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Falling to a near-eight week low, India's foreign exchange reserves fell by $1.327 billion to $317.313 billion in the week to September 5, as the country's central bank sold dollars to prevent currency volatility.
Foreign currency assets, a key component of reserves, fell by $1.029 billion to $290.364 billion, RBI’s weekly statistical statement showed.After remaining unchanged for many weeks, gold reserves too fell by $241 million to $20.933 billion.
Governor Raghuram Rajan last week said that RBI is preparing for the withdrawal exit from low rates by the US policy makers by building ‘adequate level’ of reserves and curbing volatility in foreign exchange market.
The forex reserves had ended marginally higher by $60.5 million ($0.060 billion) to $318.640 billion as on week ended August 29.
According to reports, India's reserves now covers about eight months of import bill.
For the reporting quarter ending September 5, Special Drawing Rights (SDRs) fell by $41.6 million to $4.34 billion and India's reserve position with the International Monetary Fund was down $16 million to $1.67 billion, RBI data said.
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