MUMBAI: India’s foreign exchange reserves declined by $5.4 billion to $643.16 billion for the first time in eight weeks as of April 12, as per data released by the Reserve Bank of India.
This is the steepest decline in Forex in over three months. Earlier, it rose by $32.5 billion over a period of seven weeks.
The central bank handles the the foreign exchange market to control excess volatility in the currency. It has been selling dollars in the spot forex market over the last few sessions to prevent a large-scale depreciation in the rupee amid geopolitical tensions in the Middle East and concerns over delayed rate cuts by the Federal Reserve.
Foreign exchange reserves also include India’s reserve tranche position in the International Monetary Fund.
The rupee settled at 83.47 against dollar on Friday, after hitting a record low of 83.5750 earlier in the session.
