MUMBAI: With the rupee under pressure on concerns about the 50% tariff imposed by the US on merchandise exports, the Reserve Bank of India continues to defend the currency by selling dollars, leading to the forex reserves dropping by $4.386 billion to $690.72 billion for the week to August 22.
Meanwhile, the rupee tumbled past the 88 mark on Friday, the lowest ever, and closed at 88.19 after hitting a low of 88.24 intra-day. The previous low for the unit was 87.95 on February 10.
The reserves had jumped by $1.488 billion to $695.106 billion in the previous reporting week. They had peaked at $704.88 billion in the week to September 27, 2024.
For the week ended August 22, foreign currency assets, a major component of the reserves, declined by $3.652 billion to $582.251 billion, the RBI data released 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 also decreased by $665 million to $85.003 billion during the week, the RBI said, and so did the special drawing rights which declined by $46 million to $18.736 billion.
The country’s reserve position with the IMF was also down by $23 million to $4.731 billion in the reporting week, the apex bank said.