India’s foreign exchange reserves slipped marginally below the USD 700 billion mark during the week ended 3 October, according to Reserve Bank of India data released on Friday
Mumbai: India’s foreign exchange reserves fell slightly below the USD 700 billion mark, declining by USD 276 million to USD 699.96 billion for the week ending 3 October, according to the latest data released by the Reserve Bank of India (RBI) on Friday.
In the preceding week, reserves had dropped by USD 2.334 billion to USD 700.236 billion. The recent decline marks the second consecutive weekly fall, primarily driven by a reduction in foreign currency assets.
Foreign currency assets (FCAs), the largest component of the forex reserves, decreased by USD 4.049 billion to USD 577.708 billion. The FCA figure reflects valuation effects of the appreciation or depreciation of major non-US currencies such as the euro, pound sterling and yen.
However, India’s gold reserves rose by USD 3.753 billion to USD 98.77 billion, indicating a gain in value amid global market movements. The Special Drawing Rights (SDRs) also recorded a modest increase of USD 25 million, reaching USD 18.814 billion.
The country’s reserve position with the International Monetary Fund (IMF) declined marginally by USD 4 million to USD 4.6669 billion during the week.
Economists attribute the fall largely to dollar strength and adjustments in global asset portfolios. Despite the minor dip, India remains among the nations with the highest foreign exchange reserves, providing a strong buffer against external financial shocks and import-related pressures.
(With PTI inputs)
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