Forex reserves dip below $300 bn

After six months, India’s foreign exchange (forex) reserves have dropped below the $300-billion mark.

During the week ended August 15, forex reserves fell by $3.8 billion to $296.21 billion mainly on account of an appreciation of the dollar against other currencies. Foreign exchange reserves went above the $300-billion mark in February this year and touched an all-time high of $316.17 billion in the week ended May 23.

Reserves have, however, declined for the last six weeks. Even during the previous week, foreign exchange reserves fell by $5.6 billion and the decrease was attributed to selling by foreign institutional investors due to volatility in the Indian stock markets.

The latest figures from the Reserve Bank of India (RBI) showed that the country’s foreign currency assets declined by $3.7 billion to $285.98 billion.