India’s forex reserves drop by $4.9 billion

Forex reserves decreased by $4.9 billion to $780.7 billion, after reaching a peak of $785 billion in the previous week. The fall in reserves comes as valuation of gold reserves decreased by $2.6 billion to $111.2 billion, and foreign currency assets decreased by $2.4 billion to $645.7 billion.

The decrease in foreign currency assets is likely because the Reserve Bank of India sold dollars in the spot market to prevent the rupee from excess depreciation.