Forex reserves decline by $5.4bn after 8-week rise

IANS

Mumbai, April 19

India’s foreign exchange reserves fell by $5.4 billion to $643.16 billion as of April 12, according to the weekly data released by the RBI on Friday.

This is the first time in 8 weeks that the foreign exchange reserves have recorded a fall after having touched lifetime highs in the preceding weeks. Market analysts attribute the decline to the RBI actively releasing dollars in the market to curb the volatility in the rupee.

The Indian currency has tended to weaken as oil prices have been on the rise which has triggered an increase in the demand for dollars to finance costlier imports.

The data released on Friday showed that the foreign currency portion of the reserves fell by as much as $6.51 billion in the week ended April 12. However, there was an increase of $1.24 billion in the value of gold assets held by the RBI which cushioned the fall of the forex kitty.

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