Overview

• Reserves slipped by $3.06 billion to $696.67 billion for the week ending July 11, marking the second consecutive weekly decline.
• Foreign currency assets dropped $2.48 billion to $588.81 billion, reflecting RBI dollar interventions and valuation changes in euro, pound and yen holdings.
• Gold reserves fell by $498 million to $84.35 billion, while special drawing rights declined to $18.8 billion and the IMF reserve position to $4.71 billion.
• The RBI has actively sold dollars to curb rupee volatility without maintaining a fixed exchange rate target.
• Despite recent outflows, India’s reserves still cover nearly a year of imports and service about 96% of its external debt obligations.