India’s forex reserves slip to $699.96 billion in week ended October 3

India’s foreign exchange reserves declined by $276 million to $699.96 billion in the week ended October 3, the Reserve Bank of India (RBI) data showed on Friday.

In the previous week, the reserves had dropped sharply by $2.334 billion to $700.236 billion.

Breaking down the components, foreign currency assets (FCAs) – which form the bulk of the reserves – fell by $4.049 billion to $577.708 billion. FCAs are valued in US dollars and include the impact of fluctuations in non-US currencies such as the euro, pound, and yen.

Gold reserves, however, rose by $3.753 billion to $98.77 billion, providing some cushion to the overall reserves. Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) edged up by $25 million to $18.814 billion.

India’s reserve position with the IMF declined slightly by $4 million to $4.667 billion in the reporting week.

The moderation in reserves comes amid a period of currency volatility and global market uncertainty.

Overall, India’s forex reserves remain among the world’s largest, providing a buffer against external shocks and supporting the stability of the rupee.

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