Forex reserves had dropped by $1.318 billion for the week ended June 9.
Foreign currency assets (FCAs) rose by $2.578 billion to $527.651 billion, according to the Weekly Statistical Supplement released by the RBI. Expressed in dollar terms, the FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Gold reserves dropped by $324 million to $45.049 billion, the RBI said.
The Special Drawing Rights (SDRs) were up by $62 million to $18.249 billion, the apex bank said.
The country’s reserve position with the IMF was up $34 million to $5.149 billion in the reporting week, the apex bank data showed.It can be noted that in October 2021, the country’s forex kitty had reached an all-time high of USD 645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments.Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.
The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
(With agency inputs)