RBI's efforts to stabilise rupee drains $5.14 bn from forex reserve
According to Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, the decline in Forex reserves can be attributed to the RBI`s aggressive intervention in the spot market to stem the decline in rupee`s fall.
The RBI is known to enter the markets via intermediaries to either sell or buy US dollars to keep the rupee in a stable orbit, Image source: Reuters