India's Forex Reserves Witness a Sharp Decline

India's forex reserves fell by USD 3.709 billion to USD 701.176 billion as of October 4, according to RBI. The decline included reductions in foreign currency assets, gold reserves, SDRs, and IMF reserve positions. Previously, reserves had reached a peak of USD 704.885 billion.

In the latest data released by the Reserve Bank of India, the country's foreign exchange reserves saw a significant dip of USD 3.709 billion, landing at USD 701.176 billion for the week concluding on October 4.

This comes on the heels of a substantial increase in the previous week, when the reserves soared to an all-time pinnacle of USD 704.885 billion.

The primary components contributing to this decline were foreign currency assets, which reduced by USD 3.511 billion to USD 612.643 billion. Additionally, the reserves in gold and Special Drawing Rights (SDRs) also fell by USD 40 million and USD 123 million, respectively. Furthermore, the reserve position with the IMF decreased by USD 35 million, as reflected in the current data.

(With inputs from agencies.)