Home / Economy / India's forex reserves decline to over two-year low to $532.66 bn

India's foreign exchange reserves dropped to the lowest since July 2020 to $532.66 billion the Reserve Bank of India's (RBI) weekly statistical supplement showed on Friday.

Forex reserves declined by $4.9 billion and the country's reserves declined for a ninth consecutive week.They were $537.52 billion at the end of the previous week ended 23 September.

The fall in the foreign exchange reserves can be attributed to a fall in the Foreign Currency Assets (FCA), which is a major component of the overall reserves, according to the Weekly Statistical Supplement released by RBI.

Foreign currency assets dropped $4.41 billion to $472.81 billion for the same period.

Reserve Bank of India Governor Shaktikanta Das last week said the central bank's forex reserves umbrella has continued to remain strong despite uncertainty in markets.

RBI Governor Das said about 67 per cent of the decline in reserves during this financial year that started Apr. 1 is due to valuation changes arising from an appreciating US dollar and higher US bond yields

The rupee breached the key 82 per dollar level on Friday, weakened for four straight weeks, with traders saying the RBI had likely intervened occasionally over the period to arrest the pace of currency's fall.

Surging crude oil prices, continuing apprehensions of more US Fed rate hikes and widening trade deficit are pushing the rupee to new lows, with experts opining that the downward trend is likely to continue in the near term.

For the second straight trading session, the rupee touched new all-time low level and closed 15 paise lower at 82.32 (provisional) against the US dollar on Friday.

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