The fall is attributed to a dip in foreign currency assets, which form the largest component of the reserves. These assets saw a reduction in valuation as the dollar strengthened against major global currencies.
So far this year's gains exceed India's cumulative foreign exchange rise in 2023. The rise in foreign exchange reserves, which saw a $71 billion dip in 2022, is significant in preventing the effects of global economic headwinds on the domestic economy.
For the week ended September 6, foreign currency assets, a major component of the reserves, increased by USD 5.107 billion to USD 604.144 billion, the data showed.
Following three weeks of successive increase, the Indian foreign exchange reserve registers all time high growth. Earlier in the week ending on April 5, the highest ever forex reserve was achieved with USD 648.562.
In 2022, India's forex kitty slumped USD 71 billion cumulatively. Gold reserves during the week, however, declined by USD 102 million to USD 474.74 billion.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
India's foreign exchange reserves dropped by USD 2.335 billion to USD 590.702 billion for the week ended on September 22, 2023, the Reserve Bank of India said.
The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year.
The central agency found that the firm had no authorization from the Reserve Bank of India (RBI) for forex trading.
It can be noted that in October 2021, the country's forex kitty had reached an all-time high of USD 645 billion.
India's forex reserves rose by USD 1.657 billion to USD 586.412 billion as of April 14, marking their second consecutive week of increase.
Pakistan's foreign reserves: The foreign reserves held by the State Bank of Pakistan dropped by $555 million or 6.6 percent on a weekly basis due to increased debt payments and a lack of external financing, The News reported.
According to RBI weekly statistical supplement, the reserves increased to $608.081 billion from $605.008 billion reported for the week ended June 4.
The country's foreign exchange reserves swelled by USD 3.623 billion to a record high of USD 538.191 billion in the week ended August 7, RBI data showed on Friday.
The rupee appreciated by 16 paise to close at 75.02 against the US dollar on Friday, tracking gains in domestic equities and lower crude oil prices.On weekly basis, the domestic currency logged 18 paise gains over the American unit.
The rupee pared some of its early gains to settle marginally up by 3 paise at 74.99 against the US dollar on Thursday tracking weakness in the greenback and gains in the domestic equity market.
The rupee pared initial gains to close flat at 75.65 against the US dollar on Friday as concerns about rising COVID-19 cases weighed on investor sentiment.
India's forex reserves rose substantially by USD 5.942 billion to touch a life-time high of USD 507.644 billion in the week to June 12, helped by a significant jump in the foreign currency assets (FCA), RBI data showed.
The country's foreign exchange reserves surged USD 3.43 billion to a fresh all-time high of USD 493.48 billion for the week ended May 29 on a handsome accretion of the core currency assets, the Reserve Bank of India (RBI) said on Friday.
The rupee pared its early gains to close almost flat at 75.58 against the US currency on Friday due to dollar demand from banks and rising crude oil prices.
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