The steep fall in the reserves was because of a decline in the core currency assets, which fell by $10.727 billion to $539.727 billion
The forex reserves recorded the highest ever fall for the week ended April 1, sliding by $11.173 billion to $606.475 billion as the currency came under pressure due to geopolitical developments, according to the RBI data released on Friday.
The steep fall in the foreign exchange — or forex — reserves was because of a decline in the core currency assets, which declined by $10.727 billion to $539.727 billion.
Typically, the RBI intervenes in the market to reduce volatility in the currency market by selling from its reserves kitty.
The previous worst weekly fall was of $9.6 billion for the week ended on March 11. For the reporting week, the value of gold reserves also decreased by $507 million to $42.734 billion, data from released by the Reserve Bank of India (RBI) showed.
The special drawing rights (SDRs) with the International Monetary Fund (IMF) increased by $58 million to $18.879 billion, the RBI said. The country’s reserve position with the IMF also increased by $4 million to $5.136 billion in the reporting week, the data showed.
The previous worst weekly fall was of $9.6 billion for the week ended on March 11. The Russian invasion of Ukraine has led to troubles in the currency markets. With PTI