India’s forex reserve dips to $406b

Mumbai: India’s foreign exchange reserves declined by $1.757 billion to $406.058 billion in the week to June 29 owing to fall in foreign currency assets, RBI data showed.

In the previous week, reserves had dipped by $2.25 billion to $407.81 billion.

Forex reserves had touched a record high of $426.028 billion in the week to April 13, 2018. Reserves had crossed the $400-billion mark for the first time in the week to September 8, 2017, but have since been fluctuating.

In the reporting week, foreign currency assets, a major component of the overall reserves, decreased by $1.781 billion to $380.718 billion, according to Reserve Bank data.

Expressed in the US dollar terms, foreign currency assets include the effect of appreciation or depreciation of the non-US currencies such as the euro, pound and yen held in the reserves.

Gold reserves rose by $38 million to $21.369 billion in the reporting week. The special drawing rights with the International Monetary Fund (IMF) fell by $5.2 million to $1.486 billion.

The country’s reserve position with the IMF also declined by $8.7 million to $2.484 billion, the apex bank said.

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