India's Forex Reserves Fall $1.3 Billion To $656.582 Billion In Eight Consecutive Drop
he Reserve Bank of India’s data shows a reduction of $1.3 billion, mainly influenced by persistent foreign outflows and a strong US dollar.
India's foreign exchange reserves declined to $656.582 billion for the week ended Nov. 22, according to data from the Reserve Bank of India on Friday.
The country's forex kitty fell by $1.31 billion over the previous reporting week. The forex reserves fell for the seventh week after it reached a record high of $704.89 billion in the week ended Sept. 27.
Foreign investors have pumped in Rs 1.39 lakh crore into the country's debt and equity markets so far this year, according to data from the National Securities Depository Ltd.
The month of November so far has seen Rs 21,444 crore make its way out of Indian bonds and equities, while in October FPIs pulled Rs 96,358 crore out of the Indian markets. In the same period, the Indian rupee has been under pressure amid a strong dollar and incessant foreign outflows. The RBI typically intervenes in the currency market using its dollar reserve to stabilise the local currency from high volatility.
For the week ended Nov. 22, foreign currency assets—a major component of the reserves—fell to $566.79 billion, according to the RBI data.
In dollar terms, foreign currency assets include the effect of the appreciation or depreciation of non-US units like the euro, pound, and yen held in foreign exchange reserves.
Gold reserves increased to $67.57 billion during the week.
