MUMBAI: India’s foreign exchange reserves declined by $8.32 billion to $ 566.95 billion for the week ended February 10, showed the data released by the Reserve Bank of India (RBI) on Friday.
The fall of around 8.3% in the forex reserves is the biggest drop in 11 months. This is the second consecutive week of drop in the reserves after the $1.49-billion decrease in the previous reporting week.
The fall in forex reserves coincides with weakness in the Indian currency. The rupee depreciated 14 paise to close at 82.84 against the US currency on Friday as the strength of the American currency in the overseas market and a muted trend in domestic equities weighed on investor sentiments.
The foreign currency assets, a major component of the reserves, decreased by $7.108 billion to $500.58 billion for the week ended February 10, according to the Weekly Statistical Supplement released by the RBI on Friday.
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 decreased for the second week running and were $919 million down to $42.86 billion, the RBI said.