India's forex reserves fall $18.3 bn as RBI steps in to defend rupee
India’s foreign exchange reserves fell $18.34 billion to $747.56 billion in the week ended September 25, marking the third consecutive weekly decline. The reserves have dropped $38.15 billion in three weeks from their record high of $785.71 billion on September 4.
India's foreign exchange reserves declined by $18.343 billion over the week ending September 25, marking the third consecutive weekly drop since reaching a peak of $785.706 billion. This downward trend has precipitated a $38.149 billion loss over the past three weeks, following a record high achieved at the end of September 4. As of the reporting week, reserves stood at $747.557 billion, according to RBI data.
The drop in reserves is attributed to the Reserve Bank of India's (RBI) intervention in the foreign market to curb the sharp depreciation of the rupee. Market participants attribute this to the central bank's foreign market maneuvers. Additionally, the revaluation of foreign currency assets held in currencies like the euro and yen, which have weakened against the dollar, has contributed to the decline.
The last reporting week saw foreign currency assets erode by $15.570 billion, reducing their value to $615.411 billion. The reserves held in gold also declined by $2.591 billion, falling to $108.701 billion, as per RBI data. India's reserve position with the International Monetary Fund and special drawing rights also experienced a slight decrease. The RBI does not disclose the rationale behind changes in reserves.
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