The reserves, which have been dipping as the central bank deploys the kitty to defend the rupee amid a pressure caused majorly by global developments, had declined by $2.23 billion to $550.87 billion in the previous week.
Though the fall in reserves is partly due to valuation changes, analysts believe a large part of the fall has been on account of the Reserve Bank of India’s intervention in the currency market to prevent the rupee from depreciating more sharply against dollar.
A dip was also noticed in the foreign currency assets (FCA), a major component of the overall reserves, according to the Weekly Statistical Supplement released by the Reserve Bank of India (RBI) on Friday.
The FCA decreased by $4.698 billion to $484.901 billion during the reporting week, the apex bank said.
Expressed in dollar terms, the FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Meanwhile, the rupee steadied by the close of trading on Friday after a turbulent week, tumbling past 81 per dollar to touch a record low earlier in the session, prompting RBI to intervene.
The country’s reserve position with the IMF was down by $31 million to $4.88 billion in the reporting week, the data showed.