Forex reserves decline by $12 billion as volatility hits asset valuations

Declining forex reserves and rupee depreciation are critical macroeconomic indicators, influencing inflation, interest rates, and foreign investment flows.

• •Forex reserves declined by $12 billion.
• •The Indian rupee has been experiencing heightened volatility, touching record lows against the US dollar.
• •Pressure on the rupee is linked to geopolitical tensions from the US-Israel-Iran war, affecting global energy markets.
• •Risk flag: Further escalation of geopolitical tensions
• •Risk flag: Sustained high crude oil prices