India's Forex Reserves Slip To $638.7 Billion As Pressure On Rupee Weighs
The forex reserves had risen by $4.76 billion in the previous reporting week.
India's foreign exchange reserves fell to $638.7 billion in the week ending Feb. 28, according to figures published by the Reserve Bank of India on Friday.
The forex reserves kitty fell by $1.78 billion as compared to the preceding week ended Feb. 21, when it stood at $640.48 billion.
The decline in the country's forex kitty comes after a week of gains. The reserves had risen by $4.76 billion in the previous reporting week.
The slip in forex comes amid the pressure on Indian rupee, which is hovering close to the 87-mark against the dollar. On Friday, however, the domestic currency closed stronger as a continued decline in the US dollar index and crude-oil prices offered relief amid persistent selloff by global funds.
The rupee strengthened by 24 paise to close at 86.88 against the greenback, according to Bloomberg data. The local unit had opened flat at 87.11, and had closed at 87.12 on Thursday.
For the week ended Feb. 28, foreign currency assets—a major component of the reserves—fell to $543.35 billion, according to the RBI data. In comparison, it stood at $543.843 billion at the end of the preceding week.
In dollar terms, foreign currency assets include the effect of non-US currency appreciation or depreciation in foreign exchange reserves, such as the euro, pound, and yen.
Meanwhile, gold reserves decreased to $73.27 billion from $74.57 billion, the RBI data showed.
