India's forex reserves fall $5.65 bn to $666.93 bn: RBI

India's foreign exchange reserves declined by $5.654 billion to $666.933 billion in the week ended June 26, according to data released by the Reserve Bank of India (RBI) on Friday.The latest decline comes after the country's forex reserves had risen by $963 million to $672.587 billion in the previous reporting week.
According to the official data,India's foreign exchange reserves had touched a record high of $728.494 billion during the week ended February 27. However, the reserves have since witnessed periods of decline following the outbreak of the West Asia conflict, which put pressure on the rupee and prompted the RBI to intervene in the foreign exchange market through dollar sales to curb volatility.The RBI data showed that foreign currency assets (FCAs), the largest component of the forex reserves, reflected the impact of appreciation or depreciation in non-US currencies such as the euro, pound sterling and Japanese yen held in the reserve basket.Gold reserves registered a sharp decline of $5.394 billion during the reporting week, falling to $102.536 billion.
Meanwhile, Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) declined by $89 million to $18.558 billion.India's reserve position with the IMF also edged lower by $21 million to $4.772 billion during the week, the central bank's data showed.The RBI closely monitors the country's foreign exchange reserves, which serve as a key buffer against external shocks, help stabilise the rupee during periods of market volatility, and support the country's import and external financing requirements.

(Business Correspondent)