India’s foreign exchange reserves declined by $2.92 billion, settling at $652.89 billion for the week ended June 14, according to data released by the Reserve Bank of India (RBI) on Friday. This marks a reversal from the previous week, where reserves had surged by $4.31 billion, reaching an all-time high of $655.82 billion after weeks of consistent gains.
The decrease in reserves was primarily driven by a $2.10 billion drop in foreign currency assets, a key component of the reserves, which now stand at $574.24 billion. These assets, expressed in dollar terms, reflect the impact of currency fluctuations such as the appreciation or depreciation of non-U.S. currencies like the euro, pound, and yen.
More Read
Gold reserves also took a hit, falling by $1.02 billion to $55.97 billion for the week. Additionally, the Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) decreased by $54 million to $18.11 billion.
However, India’s reserve position with the IMF saw an increase, rising by $245 million to $4.58 billion during the reporting week. The overall dip in forex reserves highlights the volatility in global markets, affecting currency assets and gold holdings.
