Comments
India's foreign exchange reserves fell for the fifth straight week to close weaker by $2.755 billion at $311.427 billion, a five month low during the week ended October 3, 2014.
As per RBI data, foreign currency assets, a major component of reserves, fell by $1.804 billion to $285.589 billion. Reserves held in gold fell by $920 million to $20.013 billion.
Other components include special drawing rights and India’s reserve position in the IMF which decreased by $22.8 million and $8.2 million to $4.284 billion and 1.540 billion, respectively.
In the previous reporting week ending September 26, the forex reserves had declined by $1.41 billion to $314.18 billion for the week.
In the last five weeks, reserves fell by about $7.2 billion as the rupee came under pressure.
During the quarter under review, the drop in reserves was largely due to drop in valuation of Indian rupee on the back of a stronger US currency against other global currencies and talks of withdrawal of quantitative easing by the US.
The central bank holds its forex reserves in different global currencies, with the US dollar being the dominant one. Among the other major currencies RBI holds are the euro, sterling and yen.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.