Forex reserves drop by $2.4 bn

After rising for three straight weeks, India's foreign exchange reserves dropped by $2.40 billion in the week ended June 10 on the back of a heavy decline in the core foreign currency assets (FCAs).

The reserves had risen by $2.69 billion to $312.90 billion in the previous reporting week.

FCAs, the largest component of the total reserves, dropped by $2.397 billion to $278.511 billion for the week ended June 10, the Reserve Bank said in its weekly data released today.

FCAs, expressed in US dollar terms, include the effect of appreciation or depreciation of the non-US currencies such as the euro, pound and yen, held in the reserves, it said.

India's gold reserves were unchanged at 24.39-billion during the reporting week, according to the apex bank data.

Both the special drawing rights (SDRs) and reserve position in the IMF also witnessed marginal falls during the week under review, the RBI said.

The SDRs decreased by $2 million to $4.621 billion, while India's reserve position in the IMF was down by $2 million to $2.980 billion, the data showed.