Fluctuating Fortunes: India's Forex Reserves Experience a Dip

India's foreign exchange reserves fell by USD 3.235 billion to USD 654.857 billion in the week ending December 6. This comes after a brief increase in reserves in the previous week. The drop was mainly in foreign currency assets and gold reserves, with slight increases in SDRs and India's IMF position.

India's foreign exchange reserves saw a significant drop of USD 3.235 billion, shrinking to USD 654.857 billion in the week concluded on December 6, as revealed by the Reserve Bank of India on Friday.

This decline follows a short-lived upswing in the reserves, which had previously climbed by USD 1.51 billion to reach USD 658.091 billion, marking a pause in the successive weeks of dwindling figures.

The decrease was primarily observed in foreign currency assets, which fell by USD 3.228 billion, alongside a USD 43 million dip in gold reserves. Conversely, Special Drawing Rights increased by USD 25 million, and India's position with the IMF rose by USD 12 million within the same week.

(With inputs from agencies.)