Foreign currency assets (FCAs), the largest component of the reserves, saw a significant dip of $3.07 billion, taking them down to $541.21 billion during the week.
However, the decrease in FCAs was more than offset by a sharp increase in gold reserves, which were by $4.1 billion to $107.93 billion.
Special Drawing Rights (SDRs) declined by $52 million to $18.64 billion, while India’s reserve position with the International Monetary Fund (IMF) slipped by $22 million to $4.79 billion.
In the previous week ended June 12, the country’s forex reserves stood at $671.63 billion.
On a year-on-year basis, India’s foreign exchange reserves slipped by $25.3 billion, with FCAs up by $47.85 billion, RBI data showed.
Despite the latest weekly decline, India continues to maintain a sizeable foreign exchange buffer that helps cushion the economy against external shocks and provides support to the rupee during periods of volatility.
The Reserve Bank of India closely monitors developments in the foreign exchange market and intervenes when necessary to ensure orderly market conditions, without targeting any specific exchange rate level.