India’s forex reserves fall by $8 billion in weekly decline
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India’s foreign exchange reserves declined by $8.094 billion to $688.894 billion for the week ended May 15, according to data released by the Reserve Bank of India on Friday.
The decline comes a week after reserves had risen by $6.295 billion to $696.988 billion during the week ended May 8.
India’s forex reserves had touched a record high of $728.494 billion in the week ended February 27 before coming under pressure following the onset of the West Asia conflict. The conflict triggered volatility in currency markets and prompted the RBI to intervene through dollar sales to support the rupee.
Prime Minister Narendra Modi has also made public appeals since May 11, urging citizens to conserve foreign exchange by reducing foreign travel, limiting fuel consumption, and avoiding gold purchases for a year.
According to RBI data, foreign currency assets, the largest component of the reserves, fell by $6.483 billion to $545.904 billion during the reporting week.
Foreign currency assets reflect the impact of movements in non-US currencies such as the euro, pound, and yen held in the reserves.
Gold reserves also declined by $1.536 billion to $119.317 billion.
Special Drawing Rights with the International Monetary Fund fell by $49 million to $18.824 billion.
India’s reserve position with the IMF declined by $25 million to $4.85 billion during the week, the RBI data showed.