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With this, India’s forex reserves have fallen by a total of $16.61 billion in three weeks.
According to analysts, the forex reserves are decreasing mainly on the back of FPI outflows from equities.
Falling for a third consecutive week, India’s foreign exchange reserves declined $2.16 billion to $688.26 billion during the week ended October 18, according to the latest RBI data released on Friday. With this, India’s forex reserves have fallen by a total of $16.61 billion in three weeks.
However, the fall in forex reserves during the latest week is the lowest in three weeks.
In the previous week, the country’s forex kitty had dropped by a significant $10.746 billion. In the week before that, it had fallen by $3.709 billion.
According to analysts, the forex reserves are decreasing mainly on the back of FPI outflows from equities.
For the week ended October 18, foreign currency assets, a major component of the reserves, decreased by $3.865 billion to $598.236 billion, the data released on Friday showed.
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 increased by $1.786 million to $67.444 billion during the week. The special drawing rights (SDRs) were down by $68 million to $18.271 billion, the RBI said.
India’s reserve position with the IMF was down by $16 million to $4.316 billion in the reporting week, the apex bank data showed.
At the end of September, the reserves had hit an all-time high of USD 704.885 billion.
