India's foreign exchange reserves drop $29 billion in the past six weeks

The week ended Nov 15 saw a decline of $6.48 billion, largely due to foreign investment outflows and a decline in the value of gold assets

India’s foreign exchange reserves declined for the sixth straight week, mainly due to the Reserve Bank of India’s intervention in the foreign exchange market as the rupee came under pressure from sustained foreign investment outflows. 

 

According to the latest data, foreign exchange reserves fell by $6.48 billion in the week ended November 8, down to $675.7 billion. Foreign currency assets fell by $4.5 billion, while the value of gold reserves declined by $1.9 billion. 

 

In the last six weeks, reserves have fallen by $29 billion after hitting an all-time high of $705 billion in the week ended September 27. During this period, the rupee depreciated 0.8 per cent against the dollar. 

 

The Indian currency hit a fresh low on Thursday, closing at 84.41 a dollar. Foreign exchange markets were closed on Friday on account of Guru Nanak Jayanti.