India Forex Reserves Fall To $666.93 Billion
India’s foreign exchange reserves fell sharply in the week ended June 26, mainly due to a decline in the value of gold reserves, while foreign currency assets saw only a marginal fall.
India Forex Reserves Fall To $666.93 Billion
India’s foreign exchange reserves declined by $5.654 billion to $666.933 billion for the week ended June 26, according to the latest weekly data released by the Reserve Bank of India.
In the previous reporting week, the country’s forex reserves had risen by $963 million to $672.587 billion. The latest fall comes after recent fluctuations in reserve levels amid changes in currency valuations, gold prices and external market conditions.
Gold Reserves Lead Weekly Forex Decline
The biggest impact came from gold reserves, which fell by $5.394 billion to $102.536 billion during the week. Foreign currency assets, the largest component of India’s reserves, declined by $150 million to $541.067 billion.
Foreign currency assets are reported in dollar terms and reflect changes in the value of non-US currencies such as the euro, pound and yen held in India’s reserves.
SDRs And IMF Reserve Position Also Drop
India’s Special Drawing Rights fell by $89 million to $18.558 billion during the same week. The country’s reserve position with the International Monetary Fund also declined by $21 million to $4.772 billion.
Foreign exchange reserves are closely tracked as they indicate the country’s external financial strength and help the central bank manage currency market volatility. India’s reserves had earlier touched a high of $728.494 billion in the week ended February 27, before easing in subsequent weeks.
