Mumbai: Forex reserves declined sharply by $5.89 billion to $617.3 billion for the week ending January 5 after rising for four consecutive weeks, according to the weekly Reserve Bank data released on Friday.
So far this fiscal, the reserves have increased $55.72 billion, according to the Reserve Bank of India (RBI).
In the previous reporting week ended December 29, the reserves rose $2.759 billion to $623.2 billion, the highest so far this fiscal. In the week before that, the reserves increased $4.471 billion to $620.441.
In October 2021, the forex kitty had reached an all-time high of $645 billion. The reserves took a hit as the central bank stepped in to defend the rupee amid pressures caused majorly by global developments since last year.
Foreign currency assets — the single-largest component of the reserves — declined $4.96 billion to $546.65 billion.
Gold reserves also declined $839 million to $47.48 billion during the reporting week, while the Special Drawing Rights (SDRs) were down $67 million to $18.29 billion, the RBI said.
The country’s reserve position with the IMF also declined $26 million to $48.66 billion in the reporting week.