Forex reserves drop by $2.17 billion to $584.74 billion

The country's forex reserves dropped by a further $2.166 billion to $584.742 billion for the week ended October 6, the RBI said on Friday. The forex had gone down by $3.794 billion to $586.908 billion in the previous week.

In October 2021, the country's forex had reached an all-time high of $645 billion. The reserves took a hit as the central bank deployed the reserves to defend the rupee amid pressures caused majorly by global developments since last year.

For the week ended October 6, the foreign currency assets, a major component of the reserves, decreased by $707 million to $519.529 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 a sharp $1.425 billion to $42.306 billion, the Reserve Bank of India said. The Special Drawing Rights (SDRs) were down by $15 million to $17.923 billion.

India's reserve position with the IMF was also down by $19 million to $4.983 billion in the reporting week, the central bank data showed.