The country’s forex reserves had risen by $964 million to $675.157 billion in the previous reporting week.
India’s forex reserves had touched a record high of $728.494 billion in the week ended February 27 this year. However, reserves declined in the following weeks amid the Middle East conflict, which put pressure on the rupee and led the RBI to intervene in the foreign exchange market through dollar sales.
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Prime Minister Narendra Modi has also made multiple appeals since May 11, urging citizens to conserve foreign exchange by reducing overseas travel, limiting fuel consumption and avoiding gold purchases for a year.
Foreign currency assets rise, gold reserves decline
Foreign currency assets (FCAs), the largest component of India’s forex reserves, increased by $4.549 billion to $551.057 billion during the week ended July 17, RBI data showed.
FCAs are expressed in dollar terms and reflect the impact of movements in the value of non-US currencies, including the euro, pound and yen, held as part of India’s foreign exchange reserves.Also Read: India’s private sector growth hits over four-year low
However, the value of India’s gold reserves declined by $3.48 billion during the week to $101.749 billion, according to the central bank.
The country’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) increased by $44 million to $18.67 billion.
India’s reserve position with the IMF fell by $32 million to $4.761 billion at the end of the reporting week, the RBI data showed.