India’s forex reserves declined by $1.9 billion to $607.03 billion in the week ended June 21, according to the latest RBI data. In the previous week ended July 14, the forex reserves had swelled by $12.743 billion to cross the $600 billion mark.
It can be noted that in October 2021, the country’s forex kitty had reached an all-time high of $645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments. In the week ended January 13 this year, the overall kitty had expanded by $10.417 billion.
For the week ended July 21, the foreign currency assets, a major component of the reserves, fell $2.41 billion to $537.75 billion, according to the Weekly Statistical Supplement released by the RBI on Friday, July 28. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Gold reserves were up by $417 million to $45.61 billion, the RBI said. The special drawing rights (SDRs) declined $11 million to $18.47 billion, the apex bank said.
The country’s reserve position with the IMF was up by $21 million to $5.2 billion in the reporting week, the apex bank data showed.
On Friday, the rupee plunged 26 paise to close at 82.18 against the US dollar on Friday amid renewed foreign fund outflows and negative trends in domestic equity markets.
An elevated level of crude prices nearing USD 84 a barrel also weighed on the domestic unit even as the American currency gained strength on the back of better-than-expected macroeconomic data from the US, forex traders said.
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