India's foreign exchange falls to a six-month low of $652.87 billion
New Delhi: India's foreign exchange reserves declined by nearly $2 billion, reaching a six-month low of $652.87 billion as of December 13, according to data released by the Reserve Bank of India (RBI) on Friday.
The reserves fell by $1.988 billion during the week ending December 13, following a drop of $3.235 billion in the prior reporting week, when reserves stood at $654.857 billion.
Despite the recent decline, India's forex reserves have exceeded $700 billion in the past, maintaining the country's status as the fourth-largest globally.
The recent decline has been attributed to revaluation effects and the RBI's interventions in the forex market to manage rupee volatility. India's forex reserves had previously peaked at an all-time high of $704.885 billion in September.
Foreign currency assets, which form the largest component of the reserves, decreased by $3.047 billion to $562.576 billion during the week.
These assets, expressed in U.S. dollars, account for fluctuations in the value of non-dollar currencies such as the euro, pound, and yen held within the reserves.
Conversely, gold reserves rose by $1.121 billion to $68.056 billion during the same period.
Special Drawing Rights (SDRs) fell by $35 million to $17.997 billion, while India's reserve position with the International Monetary Fund (IMF) dropped by $27 million to $4.24 billion.
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