India's FX reserves fall by $2.5 bln to $635.72 bln in week ended Feb 14
This story was originally published at 18:41 IST on 21 February 2025
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--RBI: India Feb 14 FX reserves $635.72 bln, down $2.54 bln on week
NEW DELHI – India's foreign exchange reserves fell by $2.54 billion to $635.72 billion in the week ended Feb. 14, likely due to the Reserve Bank of India's aggressive intervention through dollar sales to support the rupee, central bank data showed.
However, the fall in foreign exchange reserves was limited as the RBI likely neutralised a majority of its spot interventions through active buy-sell swaps in the dollar/rupee forwards market, dealers said. The RBI had intervened heavily in the spot market in the week ended Feb. 14, with dealers estimating the central bank's dollar sales at around $20 billion. The rupee had appreciated 0.7% against the dollar that week.
A further decline in reserves may have also been prevented owing to revaluation gains. The dollar index, which measures the strength of the dollar against a basket of six major currencies, declined 1.2% in the reported week. Calculated in dollar terms, the foreign currency reserves also reflect the impact of appreciation or depreciation of non-US units like the euro, the pound sterling, and the yen held in the reserves.
Foreign currency assets fell by $4.52 billion to $539.59 billion as of Feb. 14. The portion of gold in the reserves jumped up by $1.94 billion to $74.15 billion.
Foreign exchange reserves are expected to decline further this week as the central bank actively sold dollars and prevented the Indian unit from falling beyond the key 87.00-per-dollar level. End
US$1 = INR 86.71
Reported by Pratiksha
Edited by Ashish Shirke
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