Foreign exchange reserves witnessed a third consecutive weekly decline, hitting seven-week low of $637.92 billion as of April 26, according to data released by the central bank on Friday.

During the reported week, reserves decreased by $2.41 billion, following a total decline of $8.2 billion over the previous two weeks.

The Reserve Bank of India (RBI) intervenes in the foreign exchange market to manage excess volatility in the rupee.

Improvements in trade deficit, inflows into bonds, and reduced pressure on the rupee in offshore markets have lessened the necessity for aggressive intervention by the RBI in the foreign exchange market, as reported by Reuters.

Changes in foreign currency assets are influenced by RBI interventions and fluctuations in the value of foreign assets held in the reserves. Additionally, India's foreign exchange reserves encompass its reserve tranche position in the International Monetary Fund.

During the week in question, the rupee traded within a range of 83.2525 to 83.4450 against the dollar, registering a modest 0.2% increase. The currency closed at 83.4225 on Friday, recording a slight weekly decline.

(With Reuters inputs)