# 'Swelling forex reserves, current account surplus help rupee remain stable' | South Asia Monitor

> India Ratings said swelling forex reserves and a current account surplus have kept the rupee broadly stable since mid-March 2020. The agency forecast an average rate of 75.98 per dollar in FY21 and a 5.3% economic contraction.

- Date: 2020-07-30 · published 2020-07-30T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/52382-swelling-forex-reserves-current-account-surplus-help-rupee-remain-stable-south
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

A stable rupee with ample reserves limits import cost volatility for Indian feed and oil buyers, though the expected contraction in imports could soften demand.

## Read by commodity

- USDINR: neutral

## Sources

- southasiamonitor.org: https://www.southasiamonitor.org/india/swelling-forex-reserves-current-account-surplus-help-rupee-remain-stable

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