Forex reserves slide for fifth week to more than 2-month low at $682 bn

India's foreign exchange reserves dropped for a fifth consecutive week to an over 2-month low of $682.13 billion as of Nov. 1, data from the Reserve Bank of India (RBI) showed on Friday. 

The reserves fell by $2.7 billion in the reporting week.

  They had fallen by a total of $20.1 billion in the previous four weeks.

  Changes in foreign currency assets are caused by the central bank's intervention in the forex market as well as the appreciation or depreciation of foreign assets held in the reserves. 

   The RBI intervenes on both sides of the forex market to prevent undue volatility in the rupee.

  In the period for which the forex reserves data pertains, the rupee had briefly hit a record low of 84.0950 amid outflows from  equities and anxiety over the outcome of the U.S. election.

  The central bank's relentless intervention helped the local currency avert deeper losses, traders said.

  RBI deputy governor T Rabi Sankar said this week that the central bank is "well equipped" to handle any volatility in the exchange rate caused due to the U.S. elections.

  The currency closed at a record closing low of 84.3750 per dollar on Friday, logging its worst weekly fall since May.

  The forex reserves also include India's reserve tranche position in the International Monetary Fund.