Forex reserves drop by $1.268 bn to $561.583 bn

India's forex reserves declined by $1.27 billion to $561.58 billion for the week ended January 6, the Reserve Bank said on Friday.

The overall reserves had increased by $44 million to $562.85 billion in the previous reporting week after two consecutive weeks of the slide.

In October 2021, the country's foreign exchange kitty reached an all-time high of $645 billion.

The reserves had been declining as the central bank deployed the reserves to defend the rupee amid pressures caused by global developments.

Foreign currency assets (FCA), a major component of the overall reserves, dropped by $1.75 billion to $496.44 billion during the week to January 6, according to the Weekly Statistical Supplement released by the RBI.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves increased by $461 million to $41.784 billion, it said.

The Special Drawing Rights (SDRs) were up by $35 million to $18.217 billion, the apex bank said.

The country's reserve position with the International Monetary Fund (IMF) was down by $18 million to $5.141 billion in the reporting week, the data showed.