India's foreign exchange reserves declined by $1.225 billion to $311.482 billion in the week ended September 30, according to Reserve Bank of India's ‘Weekly Statistical Supplement'.
In the previous week ended September 23, India's foreign exchange reserves declined by $4.056 billion to $312.707 billion. The reserves declined due to a fall of $1.235 billion in the country's foreign currency assets to $275.699 billion.
Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as the euro, sterling and yen held in reserves.
In the week under consideration, the movement of the euro declined against the dollar from $1.3533 on Monday to $1.3387 on Friday.
The country's reserve position at the International Monetary Fund fell by $345 million to $2.612 billion. SDRs also saw a $7 million drop to $4.504 billion, while gold reserves were up $348 million to $28.667 billion.
The rupee rose to a one-week high supported by strong local stocks and speculation that the positive Sensex will lure overseas investors as Europe takes steps to resolve its debt crisis.
The rupee may strengthen against the dollar on Monday as banks may cut their long positions in the greenback on continued optimism after the European Central Bank announced steps to tackle the debt crisis in the region.