India's forex reserves dive to $275.5 bn

India's foreign exchange reserves declined by a huge $2.23 billion to $275.49 billion on a sharp dip in the foreign currency assets, the Reserve Bank said on Friday.

The total reserves had dipped $1.09 billion to $277.72 billion in the previous reporting week.

Foreign currency assets (FCA), a major component of the forex reserves, dropped by $3.08 billion to $247.40 billion for the week ended August 30, the Reserve Bank said.

Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of the non-US currencies, such as the euro, pound and yen, held in the reserves.

During the week, the gold reserves rose by $977.1 million to $21.724 billion, the central bank said.

For the week under review, the special drawing rights (SDRs) were down by $14.9 million to $4.374 billion, while the country's reserve position with the International Monetary Fund fell by $112.5 million to $1.990 billion, the RBI data showed.