MUMBAI: The forex reserves declined $4.472 billion to close at $688.104 billion during the week to November 21 due to a steep fall in the value of gold reserves, shows central bank data.
This is the second consecutive fall in the reserves having lost $5.543 billion in the previous reporting week as the rupee has been under pressure and the RBI has been in the market defending the rupee, which had on November 21 hit an all-time low of 89.61 intra day and closed at an all-time low of 89.43.
Continuing RBI intervention in the spot market helped the rupee stay under 89.50 for the fifth day on Friday with the currency ending at 89.45.
For the week ended November 21, foreign currency assets, a major component of the reserves, declined by $1.69 billion to $560.6 billion, the Reserve Bank said Friday.
Expressed in dollar terms, the foreign currency assets include the effects of appreciation or depreciation of non-US currencies such as the euro, the pound and the yen, held in the foreign exchange reserves.
However the overall steep decline was due to the slump in the value of the gold reserves of 880 tonnes to the tune of $2.675 billion to $104.182 billion during the week, the RBI said.
The apex bank said the special drawing rights (SDRs) also fell $84 million to $18.566 billion, adding so did the reserve position with the IMF to the tune of $23 million to $4.757 billion in the reporting week.