India's forex reserves drop by $3 billion to $561 billion

Mumbai: India's foreign exchange (forex) reserves fell by $3.007 billion to $561.046 billion for the week ended August 26 dragged by a slump in foreign currency assets, the Reserve Bank of India (RBI) data showed.

This is the fourth weekly fall in the country's forex reserves. India's forex reserves had slumped by $6.687 billion in the week ended August 19. The country's foreign exchange reserves have declined sharply in recent months as the RBI continues to intervene in the currency markets to defend the rupee.

As per the Reserve Bank of India's weekly statistical supplement, foreign currency assets, which are the biggest component of the forex reserves, dropped by $2.571 billion to $498.645 billion during the week ended August 26.

The foreign currency assets had declined by $5.779 billion during the week ended August 19.

Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-dollar currencies like Euro, UK's Pound Sterling and Japanese Yen held in the foreign exchange reserves.

All components of the forex reserves declined during the week under review. The value of gold reserves fell by $271 million to $39.643 billion during the week ended August 26.

The value of India's Special Drawing Rights (SDRs) with the International Monetary Fund declined by $155 million to $17.832 billion during the week under review, the RBI data showed.

India's reserve position in the International Monetary Fund (IMF) declined by $10 million to $4.926 billion during the week ended August 26, as per the RBI Weekly Statistical Supplement.