India’s forex reserves snap three-week rise, ease from near 1-year high


India’s foreign exchange reserves fell to $593.48 billion on May 19 for the first time in four weeks, falling from their highest level in nearly a year, according to the Reserve Bank of India (RBI) data showed on Friday.
Foreign exchange reserves declined $6.05 billion from the previous week after rising a total of $15.3 billion in the three weeks prior.
The central bank is intervening in the spot and futures markets to prevent uncontrolled movements in the rupee.
The changes in foreign currency assets expressed in dollars include the impact of appreciation or depreciation of other currencies held in RBI’s reserves.
Foreign exchange reserves include India’s reserve tranche position in the International Monetary Fund.
The RBI strives to remain prudent and act in a timely manner to ensure financial stability, remain proactive in foreign exchange management and focus on rupee stability, the governor said Shakktanta Das said on Wednesday.
In the week ended May 19, the rupee fell 0.6%, its sharpest fall in two months. The local currency was trading in a range of 82.1575 to 82.7925.
However, the rupee overcame two straight weeks of losses, gaining 0.1% in the week that ended Friday at 82.5750 against the dollar.

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