# India's high foreign exchange reserves not enough to shield rupee | Money & Forex Markets - Business Standard

> With crude oil above $90 a barrel, India's record forex reserves of $634 billion may not fully shield the rupee from higher oil import costs. Forex reserves covered 12.8 months of merchandise imports at end-December 2021, down from 17.7 months in FY21.

- Date: 2022-01-28 · published 2022-01-28T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/43418-india-s-high-foreign-exchange-reserves-not-enough-to-shield-rupee-money-and
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Rising oil import bills pressure the rupee and India's import capacity, which can reduce purchasing of dollar-priced feed and oilseed products while energy costs feed into freight and processing.

## Read by commodity

- WTI: bullish ▲
- USDINR: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2017-11-30 | [Rupee closes at 64.46 over concerns on fiscal deficit, oil supply cut \| Money & Forex Markets - Business Standard](https://feedsoft.ai/events/68257-rupee-closes-at-64-46-over-concerns-on-fiscal-deficit-oil-supply-cut-money-and.md) | -2.5% | +4.5% |
| WTI | 2023-01-26 | [Canadian dollar notches two-month high as stocks climb - Markets - Business Recorder](https://feedsoft.ai/events/38036-canadian-dollar-notches-two-month-high-as-stocks-climb-markets-business-recorder.md) | -4.4% | -5.8% |
| 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 | 2022-05-22 | [Volatility in rupee replaced by volatility in reserves - The HinduBusinessLine](https://feedsoft.ai/events/41689-volatility-in-rupee-replaced-by-volatility-in-reserves-the-hindubusinessline.md) | +1.9% | -2.0% |
| WTI | 2023-04-17 | [Indian rupee declines as dollar jumps on Fed policy reassessment - Markets - Business Recorder](https://feedsoft.ai/events/36659-indian-rupee-declines-as-dollar-jumps-on-fed-policy-reassessment-markets.md) | -5.7% | -15.2% |

## Sources

- business-standard.com: https://www.business-standard.com/article/finance/india-s-high-foreign-exchange-reserves-not-enough-to-shield-rupee-122012800017_1.html

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