India's foreign exchange reserves decline USD 7.27 billion to nearly USD 594.88 billion

India's foreign exchange reserves dropped by USD 7.273 billion to USD 594.888 billion for the week ended August 18, the Reserve Bank of India (RBI) said on Friday.

In the previous reporting week, the overall reserves had risen by USD 708 million to USD 602.161 billion. It is the first time in nearly a month that the reserves have dropped below USD 600 billion.

The kitty had swelled by USD 12.743 billion in the week ending July 14 to regain the psychologically important level of USD 600 billion. In October 2021, the country's foreign exchange reserves had reached an all-time high of USD 645 billion.

The reserves took a hit as the central bank deployed it to defend the rupee amid pressures caused majorly by global developments since last year.

For the week ended August 18, the foreign currency assets, a major component of the reserves, decreased by USD 6.613 billion to USD 527.786 billion, according to the Weekly Statistical Supplement released by the RBI.

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

Gold reserves were down by USD 515 million to USD 43.824 billion, the RBI said. The Special Drawing Rights (SDRs) were down by USD 119 million to USD 18.205 billion, the apex bank said.

The country's reserve position with the IMF was also down by USD 25 million to USD 5.072 billion in the reporting week, the apex bank data showed.

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