Forex reserves drop $1.19 bn to $400.10 bn in a week owing to decline in foreign currency assets, gold cache

Mumbai: The country’s foreign exchange reserves fell by $1.191 billion to $400.101 billion in the week to 31 August due to a decline in foreign currency assets and gold reserves, according to RBI data. In the previous week, the forex reserves had increased by $445.4 million to $401.293 billion. The decline in the country’s forex reserves in the past few weeks is on account of the Reserve Bank of India selling US dollars to contain depreciation in the rupee, which touched a lifetime low of 72.11 against the greenback in intra-day trade on Thursday. [caption id=“attachment_3911699” align=“alignleft” width=“380”] US dollars. Reuters[/caption] It closed at 71.73 on Friday, after opening at 71.95. In the week ended 31 August, foreign currency assets, a major component of the overall reserves, dipped by $605.1 million to $375.986 billion, as per the RBI data. Expressed in US dollar terms, foreign currency assets include the effect of appreciation/depreciation of the non-US currencies such as the euro, pound and the yen held in the reserves. Gold reserves fell by $600.9 million to $20.162 billion in the reporting week. The special drawing rights with the International Monetary Fund (IMF) rose by $5.5 million to $1.477 billion. The country’s reserve position with the IMF also increased by $9.1 million to $2.476 billion, the apex bank said.