This drop follows a previous decline of USD 7.05 billion in the week before, when reserves stood at USD 709.76 billion. Earlier this year, reserves had reached a record high of USD 728.49 billion in late February.
The main reason for the latest fall was a steep decrease in gold reserves. The value of gold holdings dropped by USD 13.49 billion to USD 117.19 billion during the week.
On the other hand, foreign currency assets, which form the largest part of the reserves, increased by USD 2.13 billion to USD 557.70 billion. These assets are affected by changes in the value of currencies like the euro, pound, and yen against the US dollar.
Meanwhile, Special Drawing Rights (SDRs) fell slightly by USD 65 million to USD 18.63 billion. India’s reserve position with the International Monetary Fund rose marginally by USD 19 million to USD 4.83 billion.
Overall, the decline in reserves was mainly driven by the fall in gold prices, despite a rise in foreign currency assets.