India's Forex Reserves Witness a Dip After Rising Streak

India's forex reserves fell by USD 2.54 billion to USD 635.721 billion during the week ending February 14, despite a recent upward trend. The decline follows RBI's interventions to moderate rupee volatility, with foreign currency assets decreasing notably while gold reserves and SDRs saw slight increases.

India's foreign exchange reserves, after enjoying a three-week rise, have taken a downturn by USD 2.54 billion, settling at USD 635.721 billion for the week ended February 14, as reported by the Reserve Bank of India.

The foreign currency assets, a key component of the forex reserves, saw a significant drop of USD 4.515 billion, dipping to USD 539.591 billion. This comes amidst ongoing RBI market interventions aimed at curbing volatility within the domestic currency market.

In contrast, gold reserves experienced an uptick of USD 1.942 billion, reaching USD 74.15 billion, while SDRs and India's IMF position also saw modest increases, indicating a shift in asset dynamics within the reserve portfolio.