India's foreign exchange reserves declined by USD 5.654 billion to USD 666.933 billion in the week ended June 26, according to data released by the Reserve Bank of India (RBI) on Friday. In the previous reporting week, the country's forex reserves had increased by USD 963 million to reach USD 672.587 billion.
The reserves had touched a record high of USD 728.494 billion during the week ended February 27 before the outbreak of the West Asia conflict. The ensuing geopolitical tensions triggered several weeks of decline in the reserves as pressure on the rupee prompted the RBI to intervene in the foreign exchange market by selling US dollars.
Prime Minister Narendra Modi has also made several public appeals since May 11, urging citizens to help conserve the country's foreign exchange by reducing overseas travel, limiting fuel consumption, and avoiding gold purchases for a year.
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For the week ended June 26, foreign currency assets (FCAs), the largest component of the forex reserves, fell by USD 150 million to USD 541.067 billion, according to the RBI's weekly statistical data.
Expressed in US dollar terms, foreign currency assets reflect the impact of appreciation or depreciation in non-US currencies such as the euro, pound sterling, and Japanese yen that are held as part of the country's foreign exchange reserves.
The value of India's gold reserves declined sharply by USD 5.394 billion to USD 102.536 billion during the reporting week, the RBI said. Meanwhile, Special Drawing Rights (SDRs) decreased by USD 89 million to USD 18.558 billion, according to the central bank.
India's reserve position with the International Monetary Fund (IMF) also registered a decline, falling by USD 21 million to USD 4.772 billion at the end of the reporting week, as per the RBI's latest data.
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