India’s foreign exchange reserves fell to a four-month low of $593.037 billion from $593.90 billion in the week that ended on September 15, PTI reported, citing data from the Reserve Bank of India.
The reserves took a hit as the central bank deployed resources to defend the falling value of the rupee amid global pressures. The rupee fell to an all-time low of 83.14 against the United States dollar on September 6.
The country’s foreign currency assets, expressed in US dollar terms, incorporate the influence of other currencies including the euro, pound and yen held in the reserves.
Traders said that the Reserve Bank of India may have been selling dollars through public sector banks to prevent the rupee from dropping to a record low further, Reuters reported.
Meanwhile, gold reserves decreased by $384 million to $44.00 billion at the end of the last week. India’s special drawing rights with the International Monetary Fund increased by $32 million, bringing it to $18.09 billion and the country’s reserve ranking with the IMF fell by $4 million to $5.03 billion.