Forex reserves fall sharply by USD 5.89 billion to USD 617.3 billion: RBI

Forex reserves declined sharply by USD 5.89 billion to USD 617.3 billion for the week ending January 5 after rising for four consecutive weeks, according to the weekly Reserve Bank data released on Friday. So far this fiscal, the reserves have increased USD 55.72 billion, according to the Reserve Bank of India (RBI).

In the previous reporting week ended December 29, the reserves rose USD 2.759 billion to USD 623.2 billion, the highest so far this fiscal. 

In the week before that, the reserves increased USD 4.471 billion to USD 620.441.In October 2021, the forex kitty had reached an all-time high of USD 645 billion. 

The reserves took a hit as the central bank stepped in to defend the rupee amid pressures caused majorly by global developments since last year.Foreign currency assets -- the single-largest component of the reserves -- declined USD 4.96 billion to USD 546.65 billion.

Gold reserves also declined USD 839 million to USD 47.48 billion during the reporting week, while the Special Drawing Rights (SDRs) were down USD 67 million to USD 18.29 billion, the RBI said.

The country's reserve position with the IMF also declined USD 26 million to USD 48.66 billion in the reporting week.