India's forex reserves register dip for 2nd week in a row

India's forex reserves register dip for 2nd week in a row

A bulk of the drop was caused by the depletion of foreign currency assets, which went down by $4.01 billion to hit $520 billion.

FPJ Web DeskUpdated: Friday, June 02, 2023, 07:30 PM IST
article-image

The Indian Rupee has had the best week in more than a month, but the weakness before that against the US dollar's strength, affected the country's forex reserves. Assets such as foreign currency and gold, which form a bulk of forex reserves, are often sold by the central bank to break the fall of the domestic currency.

After snapping a three-week winning streak in the week that ended on May 19, foreign exchange reserves dropped for the second straight week as of May 26.

With this $4.34 billion dip, the reserves hit a monthly low of $589.14 billion, although the drop was less than a $6 billion fall in the week before that.

The weight of foreign currencies

The dollar's rise causing a depreciation in other currencies also weighed in on the forex reserves maintained by the Reserve Bank of India.

A bulk of the drop was caused by the depletion of foreign currency assets, which went down by $4.01 billion to hit $520 billion.

At the same time gold in the RBI's kitty dipped by $225 million to fall below $45 billion in the forex reserves.

The data comes days after forex gains worth Rs 1.6 lakh crore drove up RBI's income by 47 per cent in FY23.

RECENT STORIES

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu..."; Here's How To Save...

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu...

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

A Big Relief For Byju's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29 Amid...

A Big Relief For Byju's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29 Amid...