Forex reserves at over 3-yr low

Fall in forex reserves attributed to foreign currency assets falling by $656.5 mn in the week to $246.75 bn

India’s foreign exchange reserves fell by $685.1 million for the week ending September 6 to $274.81 billion, the Reserve Bank of India (RBI) data released on Friday showed. The reserves are at a near three year and three month low. Foreign exchange reserves stood at $272.78 billion for the week ended June 11, 2010.

The fall in reserves was due to foreign currency assets falling by $656.5 million during the week to $246.75 billion. The fall was due to RBI's intervention in the currency market to arrest the rupee depreciation against the dollar.

During the week gold reserves remained unchanged at $21.72 billion. For the week under review, the Special Drawing Rights (SDRs) fell by $19.6 million to $4.36 billion. The reserve position at International Monetary Fund fell by $9 million to $1.98 billion.