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India’s Forex Reserves Slip to $686.2 Billion in Second Weekly Decline

The central bank lowered the policy repo rate to 5.25% after citing resilient services income plus remittances.

Overview

  • Reserves fell by $1.877 billion in the week ended Nov. 28 to $686.227 billion, RBI data showed.
  • Foreign currency assets dropped $3.569 billion to $557.031 billion, driving the weekly decline.
  • Gold holdings rose by $1.613 billion to $105.795 billion, with SDRs up $63 million and the IMF reserve position up $16 million.
  • The latest move follows a larger $4.472 billion fall in the prior week, when reserves stood at $688.104 billion.
  • RBI said the current account gap narrowed to 1.3% of GDP on robust services and remittances, while FDI strengthened and FPIs recorded about $0.7 billion of net outflows since April.