Market Intervention
India's FX reserves decline by $1.78 bln to $638.70 bln in week ended Feb 28
This story was originally published at 17:54 IST on 7 March 2025
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--RBI: India Feb 28 FX reserves $638.70 bln, down $1.78 bln on week
NEW DELHI – India's foreign exchange reserves fell by $1.78 billion to $638.70 billion in the week ended Feb. 28, possibly due to the Reserve Bank of India's intervention through dollar sales to support the rupee and revaluation losses, data released by the central bank Friday showed.
The rupee fell 0.9% against the dollar in the week ended Feb. 28 owing to the globally strengthening dollar and foreign outflows. The central bank is likely to have intervened in the spot market through dollar sales to prevent a further fall in the Indian currency, according to currency traders.
The dollar index, which measures the strength in the dollar against a basket of six major currencies, strengthened 0.9% in the reporting 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 $493 million to $543.35 billion as of Feb. 28. The portion of gold in the reserves declined by $1.30 billion to $73.27 billion.
However, foreign exchange reserves are likely to rise in the week ended Mar. 7, on the back of the central bank's $10-billion three-year dollar/rupee buy/sell swap auction on Feb. 28, whose first leg of settlement took place Tuesday.
End
US$1 = INR 86.87
Reported by Pratiksha
Edited by Rajeev Pai
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