India’s Forex Reserves Drop To $400.1 Billion
India’s foreign exchange reserves fell by $1.191 billion to $400.101 billion in the week to Aug. 31 due to a decline in foreign currency assets and gold reserves, according to data released by Reserve Bank of India.
In the previous week, the forex reserves had increased by $445.4 million to $401.293 billion.
The decline in the country’s forex reserves in the past few weeks is on account of the RBI’s move to sell U.S. dollars to contain the depreciation in the rupee, which touched a lifetime low of 72.11 against the greenback in intra-day trade on Thursday. The rupee closed at 71.73 versus a dollar today.
In the week ended Aug. 31, foreign currency assets, a major component of the overall reserves, dipped by $605.1 million to $375.9 billion, data showed. Expressed in U.S. dollar terms, foreign currency assets include the effect of appreciation or depreciation of the non-U.S. currencies such as euro, pound and yen held in the reserves.
Gold reserves fell by $600.9 million to $20.162 billion in the reported week. The special drawing rights with the International Monetary Fund rose by $5.5 million to $1.477 billion. The country's reserve position with the IMF also increased by $9.1 million to $2.476 billion, the central bank said.