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Foreign Exchange reserves fell for second straight week to $315.698 billion, a drop by $1.615 billion in the week ended September 12, 2014, RBI data showed.
In the previous reporting week, the forex reserves had weakened to a near-eight week low by $1.327 billion to $317.313 billion in the week ending September 5.
The Reserve Bank of India has been selling dollars to prevent currency volatility.
During the week under review, foreign currency assets, a key component of reserves, sharply fell to $288.765 billion, a dip by $1.6 billion, RBI data said.
Gold reserves remained unchanged at $20.933 billion.
Earlier this month, RBI Governor Raghuram Rajan had said that the central bank 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.
According to reports, India's last week’s reserves covered about eight months of import bill.
For the reporting quarter ending September 12, Special Drawing Rights (SDRs) fell a tad by $11.4 million to $4.33 billion and India's reserve position with the International Monetary Fund was down marginally by $4.4 million to $1.66 billion, RBI data said.
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