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India's forex reserves post steepest weekly decline in over 6 months

They fell by $7.27 billion from the prior week, the sharpest decline since the week ended Feb 10

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Reuters Mumbai

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India's foreign exchange reserves declined to a near two-month low of $594.89 billion as of Aug. 18 and posted their steepest weekly fall in more than six months, data from the country's central bank showed on Friday.

They fell by $7.27 billion from the prior week, the sharpest decline since the week ended Feb. 10.

The changes in foreign currency assets, expressed in dollar terms, include the effects of appreciation or depreciation of other currencies held in the Reserve Bank of India's (RBI) reserves.

The forex reserves include India's Reserve Tranche position in the International Monetary Fund.

The RBI also intervenes in the spot and forwards markets to prevent runaway moves in the rupee.

In the week for which the forex reserves data pertains, the rupee dropped to a 10-month low of 83.16 against the US dollar, prompting intervention from the RBI, as per traders.

Earlier this week, RBI Governor Shaktikanta Das reiterated that the central bank has no specific target for the rupee.

The currency ended at 82.6475 on Friday, rising more than 0.5% for the week and logging its best weekly performance since July 14.

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First Published: Aug 25 2023 | 5:45 PM IST

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