India's Forex Reserves Dip Amid Currency Market Interventions

India's forex reserves declined for the third consecutive week, dropping by USD 2.163 billion to USD 688.267 billion. The decline is linked to the Reserve Bank of India's interventions to curb the rupee's depreciation, having a strategic approach to maintain market stability and investor confidence.

India's foreign exchange reserves have experienced a third week of decline, following an all-time high earlier this month. Data released by the Reserve Bank of India (RBI) on Friday indicates a drop of USD 2.163 billion in reserves, bringing the total down to USD 688.267 billion for the week ending October 18.

The reserves, which had peaked at USD 704.885 billion, have been decreasing due to the RBI's efforts to stabilize the rupee amid external pressures. These reserves act as a buffer to safeguard the domestic economy from global financial instability, with the current levels capable of covering over a year of imports.

As per the RBI's recent data, foreign currency assets stand at USD 598.236 billion, while gold reserves are valued at USD 67.444 billion. The central bank's strategic market interventions aim to minimize exchange rate volatility, thus enhancing the appeal of Indian assets to global investors.

(With inputs from agencies.)