# Volatility in rupee replaced by volatility in reserves - The HinduBusinessLine

> A columnist argues that RBI reserve sales have replaced rupee volatility with volatility in reserves, and that the RBI's ability to hold the currency depends on crude prices staying elevated. Reserves are described as built largely from hot money flows rather than trade surpluses.

- Date: 2022-05-22 · published 2022-05-22T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/41689-volatility-in-rupee-replaced-by-volatility-in-reserves-the-hindubusinessline
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Opinion piece on currency defence; a prolonged high crude price would strain India's import bill and reserves, supporting weaker rupee expectations for feed importers.

## Read by commodity

- WTI: bullish ▲
- USDINR: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2018-08-31 | [Rupee plunges to historic low of 71  \| Business News - The Indian Express](https://feedsoft.ai/events/63796-rupee-plunges-to-historic-low-of-71-business-news-the-indian-express.md) | -3.6% | +4.2% |
| WTI | 2022-01-28 | [India's high foreign exchange reserves not enough to shield rupee \| Money & Forex Markets - Business Standard](https://feedsoft.ai/events/43418-india-s-high-foreign-exchange-reserves-not-enough-to-shield-rupee-money-and.md) | +3.4% | +5.0% |
| WTI | 2017-12-28 | [Dollar near 3-1/2 week lows; commodity, currencies stand tall - The HinduBusinessLine](https://feedsoft.ai/events/67395-dollar-near-3-1-2-week-lows-commodity-currencies-stand-tall-the.md) | +3.9% | +11.0% |
| WTI | 2017-01-09 | [Oil Prices: What to Make of the Volatility](https://feedsoft.ai/events/73142-oil-prices-what-to-make-of-the-volatility.md) | -3.0% | -1.8% |
| WTI | 2021-03-03 | [Re-assessing the commodity-FX relation \| articles \| ING THINK](https://feedsoft.ai/events/12207-re-assessing-the-commodity-fx-relation-articles-ing-think.md) | +7.2% | +1.4% |

## Sources

- thehindubusinessline.com: https://www.thehindubusinessline.com/money-and-banking/volatility-in-rupee-replaced-by-volatility-in-reserves/article65439119.ece

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.