India’s forex reserves dipped by $2 billion to $646.67 billion as of May 24, latest data by the Reserve Bank of India showed on Friday.
Previously, forex reserves expanded by $4.54 billion to reach an all-time high of $648.7 billion for the week ended on May 17, 2024.
According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) decreased by$ 1.51 billion to $567.5 billion. Expressed in dollar terms, the FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Gold reserves contracted by $482 million to $56.71 billion, whereas SDRs were down by $33 million to $18.12 billion.
Reserve in the IMF dipped by $1 million to $4.33 billion.
Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.
The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
