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FX Reserves Fall at Sharpest Pace Since Apr'22

INDIA
  • Data showed a decline to $566.95bln as of Feb 10, a drop of just over $5bln on the week, the fastest pace of decline since April of last year.
  • The RBI are still seen heavily intervening in currency markets, with overnight trade suggestive of the RBI selling USD via NDF to contain USD/INR below 83.00. Reports overnight cited local sources in saying the Bank were also active to defend that level back in December.
  • On liquidity, Reuters cites sources in writing that the RBI may provide overnight or possibly intra-week repo infusions next week in order to meet current outflow pressure connected to GST payment deadlines.

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