FX reserves record sharpest fall since August last year

This is the fifth straight week in which the reserves have fallen

The country foreign exchange reserves fell the most in over an year for the week ended October 3 as it declined by $ 2.75 billion.

This was the fifth straight week the reserves fell. According to latest RBI data, total reserves stood at $ 311.4 billion, as on 3 October, which has come down by $7.2 billion since end August. The decline is mainly due to 1.8 billion fall in foreign currency assets, while the value of gold reserves also came down.

Last week's decline is largest weekly fall since the week ended August 2, 2013 - during the peak of the currency crisis when it fell by almost $ 3 billion. During the currency crisis last year, reserves fell to $ 274.8 billion for the week ended 6 September but had reversed the trend since then following steps taken by the central bank to attract inflows. The foreign reserves had touched close to all time high of $320.5 billion for the week ended June 25 this year.

 

The rupee which hit all time low last August also stabilised on the back of robust inflows.