India’s forex reserves dip $2.9 bn to come off all-time record high

economictimes.indiatimes.com:

forex reserves contracted by $2.92 billion to $652.9 billion as of June 14, data shared by the Reserve Bank of India showed on Friday.

Previously, forex reserves surged by $24.3 billion to a record high of $655.8 billion, for the week ended on June 7.

According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) decreased by $2.1 billion to $574.2 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 dipped by $1.02 billion to $55.97 billion, whereas SDRs were down by $54 million to $18.11 billion.

Reserve position in the IMF increased by $245 million to $4.58 billion.

The Indian rupee closed at 83.5325 against the U.S. dollar, up 0.1 per cent from its close at 83.6525 in the previous session. It hit a record low of 83.6650 on Thursday.

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.