India's Forex Reserves Drop by $1.47 Billion

Mumbai; India's foreign exchange reserves declined by $1.47 billion to $292.92 billion for the week ended April 6, the lowest level in more than two months, largely due to suspected sale of dollars by the Reserve Bank of India (RBI) to curb the slide in value of rupee, official data showed.

Foreign currency assets, the biggest component of the forex reserves kitty, dropped by $1.42 billion to $258.65 billion during the week under review, according to the Reserve Bank of India's weekly statistical supplement.

The RBI did not provide any reasons for the change in foreign currency assets.

It said the assets expressed in US dollar terms included the effect of appreciation or depreciation of non-US currencies such as the pound sterling, euro and yen held in reserve.

However, analysts said the central bank might have sold dollars to strengthen the value of rupee as it dropped to three-month low during the week under review.

The value of special drawing rights (SDRs) declined by $31.5 million to $4.43 billion, and India's reserves with the International Monetary Fund (IMF) fell by $20 million to $2.81 billion.

The value of gold reserves remained unchanged at $27.02 billion.