India's forex reserves dip by USD336.5 million | SupportBiz

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India's forex reserves dip by USD336.5 million

India's foreign exchange reserves (forex) plunged by USD336.5 million to USD287.62 billion in the week ended July 6, data from India's central bank showed.

The Reserve Bank of India (RBI) did not provide any reasons for the decline, but it is understood that the central bank has sold dollars from the reserves to curb the slide in the value of rupee.

The Indian rupee slumped to a record lows in recent weeks owing to high current account deficit, increased demands from oil importers and outflow of foreign institutional investors (FIIs) funds, as poor gross domestic product (GDP) growth data dampened sentiment in the Indian markets.

However, the rupee value gained some strength on July 13 when it closed at 55.15 against a dollar, as the trade deficit narrowed down to $10.3 billion in June against USD14.4 billion in the same month last year.

The forex had grown by USD1.36 billion to USD289.992 billion in the week ended June 29.

Foreign currency assets, the biggest component of the forex reserves kitty, fell by USD357.4 million to USD254.63 billion for the week under review, the RBI said in its weekly statistical supplement.

According to the RBI, assets in US dollar terms included the effect of appreciation or depreciation of non-US currencies such as pound sterling, euro and yen held in reserve.

The foreign currency assets had grown by USD1.17 billion to USD256.95 billion for the week ended June 29.

The value of gold reserves remained during the week under review remained the same at USD25.76 billion.

The value had increased by USD0.17 billion in the week ended June 29. It had declined in the week ended June 1 by USD1.03 billion to USD25.58 billion and since remained the same till the week ended June 22.

The value of special drawing rights (SDRs) fell by USD5.5 million to USD4.35 billion, and India's reserves with the International Monetary Fund (IMF) plunged by USD3.6 million to USD2.87 billion.