India’s forex reserves dipped by $1.71 billion to $652 billion as of June 28, data shared by the Reserve Bank of India showed on Friday.
Previously, forex reserves rose by $816 million to $653.7 billion for the week ending on June 21.
According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) decreased by $1.25 billion to $572.88 billion. Expressed in dollar terms, the FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Gold reserves contracted by $427 million to $56.53 billion, whereas SDRs were down by $35 million to $18.01 billion.
Reserve position in the IMF was up by $1 million to $4.57 billion.
Forex reserves expanded by $4.3 billion to hit a record high of $655.82 billion on June 7 this year.
Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.
The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.