Forex reserves decline $ 5.24 billion to $ 617.23 billion

India's forex reserves declined USD 5.24 billion to USD 617.23 billion for the week ending February 9, according to weekly data released by the Reserve Bank of India (RBI) on Friday.

The forex kitty stood at USD 622.5 billion for the week ended February 2.

However, in the current fiscal, the forex reserves have increased USD 50.28 billion, the RBI data showed.

Foreign currency assets, which constitute the largest component of the reserves, dropped USD 4.07 billion to USD 546.52 billion during the week under review, as per the latest data.

The reserves had peaked in October 2021, when kitty had reached USD 645 billion. The reserves took a hit as the central bank sold dollars to defend the rupee amid pressures caused majorly by global developments since last year.

As a result, the rupee has been the best Asian currency so far this fiscal.

The sharp fall in the overall reserves was due to a sharp decline in foreign currency assets, which are the single largest component of the reserves.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and the yen held in the foreign exchange reserves.

The country's reserve position with the IMF also declined USD 28 million to USD 48.32 billion in the reporting week.