Overview
- India’s foreign exchange reserves fell by $7.794 billion to $690.693 billion for the week ended May 1, according to RBI data.
- Foreign currency assets dropped $2.797 billion to $551.825 billion while the dollar value of gold slid $5.021 billion to $115.216 billion.
- Special Drawing Rights rose by $15 million to $18.789 billion and India’s reserve position with the IMF increased by $8 million to $4.863 billion.
- The decline extends a multiweek pullback from the February 27 peak of $728.494 billion, following a $4.82 billion drop in the week ended April 24.
- RBI has been selling dollars to steady the currency after the West Asia conflict unnerved flows, a policy that can slow rupee swings but draws down buffers used to pay for imports.