India Forex Reserves Fall to Near Two-Year Low

Though the fall in reserves is partly due to valuation changes, analysts believe a large part of the fall has been on account of the RBI’s intervention to prevent the rupee from depreciating more sharply.

Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration, January 21, 2016. Credit: Reuters/Jason Lee/Illustration/File Photo

Mumbai: India’s foreign exchange reserves fell for a seventh straight week, dropping to $545.652 billion in the week to September 16, its lowest level since October 2, 2020, Reserve Bank of India’s weekly statistical supplement showed on Friday.

Reserves stood at $550.871 billion at the end of the previous week.

Though the fall in reserves is partly due to valuation changes, analysts believe a large part of the fall has been on account of the Reserve Bank of India’s intervention in the currency market to prevent the rupee from depreciating more sharply against the dollar.

The rupee steadied by the close of trading on Friday after a turbulent week, tumbling past 81 per dollar to touch a record low earlier in the session, prompting the Reserve Bank of India to intervene.