Kolkata: India’s foreign exchange reserves dipped by another $2.163 billion in the week ending October 18 to $688.267 billion, amid a massive sell-off by foreign institutional investors in the local equity market.
This is the third week in a row that the forex reserves fell — cumulatively by 16.618 billion from the all-time high of $704.885 billion, according to data released by the Reserve Bank of India.
The FII offloaded around $10 billion worth of equity investments in the first three weeks of October, making it the biggest monthly sell-off from the Indian stock market beating the $7.9 billion sale seen during the pandemic-led market crash in March 2020.
In the preceding week, the foreign currency assets fell by $3.865 billion to $598236 billion while reserves held in gold rose by $1.786 billion to $67.444 billion.