India's foreign exchange reserves which had seen a seven- week winning streak, have witnessed a decline, falling from near 22-month highs to $617 billion,data from the central bank showed on Friday. This news comes amid global economic uncertainties and changing market dynamics.The reserves witnessed the steepest decline in nearly five months, falling $5.9 billion for the reported week, following a cumulative increase of $32.9 billion in the preceding seven weeks.
The Reserve Bank of India (RBI) intervenes in the foreign exchange market to curb excess volatility in the rupee.Changes in foreign currency assets include the impact of the RBI's intervention as well as the appreciation or depreciation of foreign assets held in the reserves.Foreign exchange reserves also include India's reserve tranche position in the International Monetary Fund.
(Ira Singh, Asstt Editor, Gandhinagar)
Ira Singh
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