India's Forex Reserves Hit New Low Amid Volatile Market

India's foreign exchange reserves declined by USD 5.693 billion, reaching USD 634.585 billion as of January 3. This trend of declining reserves has continued over several weeks. While foreign currency assets decreased, gold reserves saw a rise. The Reserve Bank of India attributes these changes to market interventions and revaluation.

India's foreign exchange reserves fell by USD 5.693 billion to USD 634.585 billion for the week ending January 3, announced the Reserve Bank of India.

This third consecutive week of decline follows a USD 4.112 billion drop earlier. The downward trend in forex reserves is linked to revaluation alongside RBI's interventions aimed at stabilizing the rupee.

While foreign currency assets reduced by USD 6.441 billion, gold reserves rose by USD 824 million. Concurrently, Special Drawing Rights and India's IMF position saw slight reductions.

(With inputs from agencies.)