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Rupee exchange rates fluctuate as India’s forex reserves surge

India’s foreign exchange reserves saw a significant increase, despite a notable foreign investor pullout, ending the week of October 27 with a total of $586.111 billion, a surge of $2.579 billion according to the Reserve Bank of India (RBI). This considerable rise was largely attributed to the maturity and reversal of a $5 billion dollar-rupee swap agreement between RBI and various banks that had been in place for one-and-a-half years, resulting in a seamless transfer from banks’ accounts to RBI’s account.

The Indian rupee depreciated by 5 paise against the US dollar, closing Friday at an exchange rate of 83.29. Despite these dynamics and the foreign investor pullout of Rs 17,875 crore, stability in foreign currency assets was maintained through RBI’s regular spot interventions and fluctuations in asset values.

Meanwhile, on Friday, Pakistan’s forex market operated from 9 am to 5 pm setting fluctuating exchange rates for several currencies including USD, SAR, GBP, AED, and EUR. These rates not only influenced interbank transactions but also retail ones differently and set the tone for the next day’s opening rates.

In relation to the Indian rupee, the Pakistani rupee concluded Friday with an exchange rate of 3.41. The fluctuations in exchange rates between these two neighboring nations are closely watched by traders and economists due to their interconnected economies.

In Indian stock market news, the benchmark Sensex rose by 0.44 percent or 283 points to close at 64,363.78 on Friday. The performance of this index often reflects investor sentiment towards the overall health of the Indian economy and can impact forex reserves and currency exchange rates.

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