India’s forex reserves fall $18.3 bn as RBI steps in to defend rupee

India lost $38.149 billion in the past three weeks, after hitting the record high at the end of September 4. The reserves stood at $747.557 billion at the end of the reporting week, RBI data showed.

The dip in reserves reflects the size of the central bank’s foreign market intervention to stem the rupee’s sharp depreciation, market participants said. It reflects revaluation of foreign currency assets held in other currencies like euro and yen, which also weakened against the dollar, people aware said. RBI does not provide reasons behind changes in reserves.

In the last reporting week, foreign currency assets got poorer by $15.570 billion to $615.411 billion. Reserves held in gold also depleted by $2.591 billion to $108.701 billion, RBI data showed. India’s reserve position with the International Monetary Fund and special drawing rights also came down by a tad.