As the Reserve Bank of India RBI sold dollars to the Indian Rupee to combat the fall of the Indian Rupee, India's depleted the most among all emerging economies. India's reserves have fallen 13.88 per cent from $633.6 billion to $545.6 billion since the beginning of 2022, according to a report in BusinessLine BL After India, Russia's reserves have fallen over 10 per cent, followed by Indonesia's 9.19 per cent. Taiwan's foreign reserves fell by the least, only 0.53 per cent.
The steps taken by RBI have been able to limit the fall in the rupee. The rupee proved to be more resilient than most other currencies in the world. The rupee fell 8.9 per cent against the US Dollar. The report said that the drop in South Korea's won was the highest at 16.37 per cent, followed by Thailand and Taiwan's won at 12.5 per cent.
The policy of RBI is read: How inflation, repo rate and demand are linked to each other.
The rupee had fallen 6.9 per cent from September 14 to 6.9 per cent. The rupee closed on Thursday at 81.73 per cent against the On Wednesday. It closed at an all-time low of 81.94.
The monetary policy will be announced on Friday. The repo rate may go up to 5.9 per cent, according to experts who said that the bank may go with a 50 basis points hike.
Due to the high inflation and a fall in the value of the rupee, this becomes necessary. They said that if the Indian currency falls, it could lead to a further fall in India's foreign reserves.