Indian rupee stable in real effective terms, forex reserves adequate: RBI
In real effective terms, the Indian rupee remained stable in November, as depreciation of the INR in nominal effective terms was offset by higher prices in India compared to its major trading partners, according to the Reserve Bank of India’s (RBI) December Bulletin.
The rupee depreciated against the US dollar in November, pressured by the strengthening of the US dollar, muted foreign portfolio flows, and uncertainty surrounding the India-US trade deal.
“The volatility of INR, as measured by higher prices in the coefficient of variation, moderated in November from a month ago and remained relatively lower that most currencies. In December so far (up to 19), the INR depreciated by 0.8 per cent over its end-November level,” according to the Bulletin.