India's foreign exchange reserves dropped by $10.7 billion, reaching a total of $690 billion as of October 11, according to data from the Reserve Bank of India (RBI).

The RBI's Weekly Statistical Supplement indicated that foreign currency assets (FCAs) fell by $10.5 billion to $602 billion. These assets are affected by the value changes of non-US currencies like the euro, pound, and yen in the reserves.

Additionally, gold reserves decreased by $98 million, bringing them down to $65.6 billion. Special Drawing Rights (SDRs) also declined by $86 million to $18.3 billion, while India's reserve position in the International Monetary Fund (IMF) fell by $20 million to $4.3 billion.

To manage market fluctuations and prevent a sharp depreciation of the rupee, the RBI occasionally intervenes in the market. The RBI monitors foreign exchange markets closely and acts to maintain stability, avoiding excessive volatility in the exchange rate without adhering to a specific target level.

Notably, the recent decline in India’s foreign exchange reserves highlights ongoing challenges in managing currency stability amid fluctuating global markets. The RBI's proactive measures to intervene and stabilize the rupee reflect its commitment to maintaining orderly market conditions. As the central bank continues to navigate these economic pressures, stakeholders remain attentive to the implications for India’s financial landscape and overall economic health.

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