India’s forex reserves dip below $700 billion after staying above that level for two weeks

India’s foreign exchange reserves dipped below the $700 billion mark in the week ended October 11^th after staying above this level in the preceding two weeks.

The reserves shrunk by $10.746 billion during the reporting week to stand at $690.43 billion as on October 11, 2024.

Nuvama Wealth, in a report, said,“This (decline in reserves) was majorly on revaluation losses (stronger US Dollar as well as higher treasury yields) as well as anecdotes of RBI intervention (in the forex market). The central bank did not conduct OMO (open market operation) sales (of Government Securities) in the 11th of October week despite ample liquidity conditions.”

In the reporting week, the reserves were down mainly due to the Foreign Currency Assets (FCA) dipping $10.542 billion.

The other three components of the reserves too declined – Gold ($98 million), Special Drawing Rights ($86 million) and Reserve Position in the International Monetary Fund ($20 million).

Since March-end 2024, India’s reserves are up by $44.011 billion.

• Also read: Rupee slips 1 paisa to 84.07 against US dollar in early trade