India's foreign exchange reserves fall $5 billion, shows RBI data

India’s foreign exchange reserve declined by $5 billion to $594 billion in the previous week on the back of a fall in foreign currency assets, latest data by the Reserve Bank of India (RBI) showed.

The RBI has been persistently selling dollars in order to protect the rupee from depreciating further.

“The RBI could have sold around $1 billion in the previous week. The rest of the decline in the foreign currency assets can be attributed to the revaluation,” said Amit Pabari, managing director at CR Forex.

The local currency had settled at an all-time closing low level of 83.21 a dollar on September 7. It ended at 83.18 per US dollar on Friday.

Followed by foreign currency assets, gold reserves, and special drawing rights fell by $554 million and $134 million, respectively. The reserve position in the International Monetary Fund fell by 39 million.