India's forex reserves hits 11-week low; declines $4.9 billion to $593.90 billion: RBI Data

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foreign exchange (forex) reserves fell to an 11-week low of $593.90 billion as of September 8 - a decrease of $5 billion from the previous week, Reserve Bank of India's (RBI) data showed on Friday, September 15. Forex reserves had risen by $4 billion in the week to September 1. In the previous reporting week, the kitty had jumped $4.039 billion to $598.897 billion.

The country's forex kitty had reached an all-time high of $645 billion in October 2021. The reserves took a hit as the central bank deployed the reserves to defend the rupee amid pressures caused majorly by global developments since last year, according to news agency Reuters. For the week ended September 8, the foreign currency assets, a major component of the reserves, decreased by $4.265 billion to $526.426 billion, according to the Weekly Statistical Supplement released by the RBI.

Expressed in dollar terms, the foreign currency assets 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 were down by $554 million to $44.384 billion, the RBI said. The special drawing rights were down by $134 million to $18.06 billion, the central bank said.

The country's reserve position with the IMF was also down by $39 million to $5.034 billion in the reporting week, according to RBI data. The central bank intervenes in the spot and forwards markets to prevent runaway moves in the rupee. The changes in foreign currency assets, expressed in dollar terms, include the effects of appreciation or depreciation of other currencies held in the RBI's reserves.