of India Foreign exchange reserves It fell nearly $2 billion to a near six-month low of $652.87 billion as of Dec. 13, the data showed. Reserve Bank of India (RBI) showed on Friday.
Reserves fell by $3.2 billion in the week of December 6 and are down $52 billion from a record high of $704.89 billion on September 27.
Changes in foreign currency assets occur due to central bank intervention in the forex market as well as depreciation or depreciation of foreign assets held in reserves.
RBI intervenes on both sides of the forex market to prevent unnecessary fluctuations in the rupee.
Last week, the rupee fell to an all-time low of 84.88, pressured by weakness in the yuan and continued strong bids for the dollar in the non-deliverable forwards market. The currency fell 0.1 percent last week.
The domestic unit ended Friday at 85.0150, down for a seventh straight week. It hit a record low of 85.10 earlier in the day, following a strange turn in the Federal Reserve’s future outlook on policy rates.
Foreign exchange reserves include India’s reserve position in the International Monetary Fund.