India’s foreign exchange reserves fell to a near 11-month low of $623.98 billion as of Jan. 17, extending their losing streak for a seventh straight week, data from the Reserve Bank of India showed on Friday.
The reserves declined by $1.89 billion in the reported week, and have fallen cumulatively by around $32.2 billion in the prior six weeks.
Changes in foreign currency assets are caused by the central bank’s intervention in the forex market as well as the appreciation or depreciation of foreign assets held in the reserves.
The RBI intervenes on both sides of the forex market to limit volatility in the local currency. The rupee fell past the psychologically important 86 level in the week to Jan. 17, bogged down by a rally in the U.S. dollar and expectations of policy changes under U.S. President Donald Trump.
The currency had declined to an all-time low of 86.6475 during the week, but frequent interventions by the RBI helped prevent sharper losses, traders said. Still, the rupee had logged its worst week in 18 months and posted its eleventh straight week of declines.
The currency settled at 86.2050 to the dollar on Friday, and posted its biggest weekly rise more than a year. The forex reserves also include India’s reserve tranche position in the International Monetary Fund.
