India's forex reserves fall by $10.7 billion

India’s forex reserves dipped by $10.7 billion to $690 billion as of October 11, data shared by the Reserve Bank of India showed on Friday.

According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) dipped by $10.5 billion to $602 billion. 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.

Gold reserves decreased by $98 million to $65.6 billion. SDRs also saw a dip by $86 million to stand at $18.3 billion. Reserve position in the IMF contracted by $20 million to $4.3 billion.

The RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any predetermined target level or band.