The Hindu Business Line : Forex reserves down $2 b

Mumbai, Sept. 5 The foreign exchange reserves decreased by $1.97 billion to $295.309 billion for the week ended August 29, according to figures released by the Reserve Bank of India in its Weekly Supplement.

The reserves were pulled down by a fall in the value of gold and decline in foreign currency assets. The decline in the value of the gold reserves was due to the fall in international gold prices, said dealers. For the week under review, gold fell $1.04 billion to $8.692 billion. Gold prices have fallen by more than $100, from $938 an ounce on July 1 to $810 an ounce on September 5.

For the week ended August 22, foreign exchange reserves had increased by $1.076 billion to touch $297.286 billion.

According to forex dealers, dollar selling by the RBI to arrest the rupee’s slide led to a decline in the reserves.

In the week under review, foreign currency assets fell $932 million to $286.11 billion.

Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies. The reserve position in the IMF declined by $2 million to $496 million while SDRs remained unchanged at $4 million.

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