RBI's forex reserves fall for first time in five weeks to $563.50 bn: Data

RBI likely resumed dollar sales to shield rupee from excess volatility

The Reserve Bank of India’s (RBI’s) foreign exchange reserves declined for the first time in five weeks to $563.50 billion in the week ended December 16.

The $571-million fall in the RBI’s reserves was primarily due to a decline in the central bank’s foreign currency assets, which dropped by $500 million to $499.62 billion in the previous week, latest data showed.

The decline in the reserves was likely due to the fact that the central bank resumed dollar sales in order to protect the rupee after a month of relative stability in the domestic currency.

In the week ended December