India’s forex reserves slip to $635 billion breaking its three week upward momentum

NEW DELHI: India’s foreign exchange reserves broke the three-week upward streak for the week that ended on 14 February, falling by $2.54 billion to reach $635.721 billion, according to data released by the RBI on Friday.
This follows a rise of $7.654 billion in the previous week to $638.261 billion.
India’s forex reserves had reached an all-time high of $704.885 billion in September last year before declining due to RBI’s interventions in the forex market to manage rupee volatility.
According to the latest RBI data, foreign currency assets, the largest component of forex reserves, dropped by $4.515 billion to $539.591 billion. These assets, expressed in dollar terms, also account for the impact of currency fluctuations involving the euro, pound, and yen.
Gold reserves, however, saw a rise of $1.942 billion, reaching $74.15 billion during the week.
Meanwhile, special drawing rights (SDRs) increased by $19 million to $17.897 billion, and India’s reserve position with the International Monetary Fund (IMF) edged up by $14 million to $4.083 billion.