India's foreign exchange (forex) reserves fell by USD2.59 billion in the week ending March 18, a sharp drop for the second week in a row, as the Reserve Bank of India (RBI) sold dollars in large quantities to prevent the rupee from falling in value.
According to the RBI's weekly statistical supplement, the country's currency reserves fell by USD2.597 billion to USD619.678 billion during the week reportedly ended March 18,. Gold reserves and foreign currency assets both dropped sharply in value.
For the week ending March 11, India's foreign exchange reserves fell by USD9.646 billion, the largest drop in nearly two years. The steep drop in the country's foreign exchange reserves coincides with the rupee's all-time low this week. On March 7, the Indian rupee hit a new low of 77.02 against the US dollar.
Foreign currency assets, the largest component of forex reserves, fell USD703 million to USD553.656 billion in the week ending March 18. In the preceding week, foreign currency assets fell by USD11.108 billion.