India's Forex Reserves Fall by USD 1.27 Billion to USD 719.75 Billion

India's foreign exchange reserves declined by USD 1.269 billion to USD 719.748 billion in the latest reporting week, the Reserve Bank of India (RBI) said on Friday, extending the recent downward trend in the country's foreign exchange kitty.

The overall reserves had fallen by USD 5.011 billion to USD 721.016 billion in the previous reporting week ended October 16, according to the central bank's data.

India's forex reserves had touched an all-time high of USD 785.706 billion in the week ended September 4, supported by substantial foreign currency inflows through a special concessional swap arrangement for deposits from the Indian diaspora. Banks raised a record amount of nearly USD 133 billion through the arrangement.

However, the reserves have been declining since then. Experts attribute the reduction to the deployment of resources raised through Foreign Currency Non-Resident (Bank) (FCNR(B)) deposits and the RBI's intervention in the foreign exchange market through dollar sales to support the rupee.

Foreign currency assets (FCA), the largest component of India's forex reserves, increased by USD 1.358 billion to USD 593.205 billion in the week ended October 23, the RBI data showed.

FCA, expressed in dollar terms, reflects changes in the value of other currencies, including the euro, pound and yen, held as part of the reserves.

Meanwhile, the value of gold reserves declined by USD 2.65 billion to USD 103.15 billion during the week, according to the central bank.