India's forex reserves falls by USD 2.16 billion to USD 584.24 billion

India's forex reserves dropped by USD 2.164 billion to USD 584.248 billion for the week ended April 21, the Reserve Bank said on Friday. In the previous reporting week, the overall kitty had risen by USD 1.657 billion to USD 586.412 billion.

It can be noted that in October 2021, the country's forex kitty had reached an all-time high of USD 645 billion. The reserves have been declining as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments. For the week ended April 21, the foreign currency assets, a major component of the reserves, decreased by USD 2.146 billion to USD 514.489 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 dropped by USD 24 million to USD 46.151 billion, the RBI said. The Special Drawing Rights (SDRs) were up by USD 19 million to USD 18.431 billion, the apex bank said.
The country's reserve position with the IMF was down by USD 14 million to USD 5.176 billion in the reporting week, the apex bank data showed.

The rupee pared all its initial gains to settle lower by 3 paise at 81.82 (provisional) against the US currency on Friday amid a strong greenback overseas. However, the strong sentiment in the domestic equities market restricted the depreciating bias in the rupee, forex traders said. At the interbank foreign exchange, the domestic unit opened at 81.77 against the dollar and finally closed at 81.82 (provisional), down 3 paise from its previous close. During the day, the rupee witnessed a high of 81.72 and a low of 81.85 against the greenback.

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