Forex Reserves Drop By $1.19 Billion To $400.10 Billion

The country's foreign exchange reserves fell by USD 1.191 billion to USD 400.101 billion in the week to August 31 due to a decline in foreign currency assets and gold reserves, according to RBI data.

In the previous week, the forex reserves had increased by USD 445.4 million to USD 401.293 billion. The decline in the country's forex reserves in the past few weeks is on account of the Reserve Bank of India selling US dollars to contain depreciation in the rupee, which touched a lifetime low of 72.11 against the greenback in intra-day trade Thursday.

It closed at 71.73 Friday, after opening at 71.95. In the week ended August 31, foreign currency assets, a major component of the overall reserves, dipped by USD 605.1 million to USD 375.986 billion, as per the RBI data.

Expressed in US dollar terms, foreign currency assets include the effect of appreciation/depreciation of the non-US currencies such as the euro, pound and the yen held in the reserves.

Gold reserves fell by USD 600.9 million to USD 20.162 billion in the reporting week. The special drawing rights with the International Monetary Fund (IMF) rose by USD 5.5 million to USD 1.477 billion.

The country's reserve position with the IMF also increased by USD 9.1 million to USD 2.476 billion, the apex bank said.