Forex Reserves Enough To Deal With Rupee Depreciation; No India Impact Seen Due To US' Oil Sanctions

The Indian government is not seeing any major impact on trade or oil supply due to the US's fresh sanctions on Russian oil, according to a top government official.

Additionally, the government is seeing that its forex reserves are strong enough to deal with the depreciation that the rupee has seen in its value over the past month or so.

India's services exports also stand to gain from the fall in the rupee, according to the official.

The rupee has depreciated beyond the psychologically crucial level of 86 per dollar, as the dollar index hovered around a two-year high and oil prices surged.

Further, oil, which has stayed within range of late, extended gains to hit the highest in more than four months as a fresh wave of US sanctions against Russia’s energy industry threatened to crimp supplies in an already-tightening global market.

India is a key market for Russian oil, and refiners will have to potentially seek alternative supplies. India emerged as a vital importer of Russian crude in the aftermath of Moscow’s 2022 invasion of Ukraine.