India's Foreign Exchange Reserves Decline To USD 656 Bn

New Delhi, Nov 30 (KNN) India's foreign exchange reserves have declined to USD 56.582 billion for the week ended November 22, as reported by the Reserve Bank of India (RBI) on Friday. 

The country's forex reserves have fallen by USD 1.31 billion compared to the previous reporting week, marking the seventh consecutive week of decline since reaching a record high of USD 704.89 billion in late September.

According to RBI data, foreign currency assets decreased to USD 566.79 billion. 

These assets, calculated in dollar terms, incorporate the impact of appreciation or depreciation of non-US currencies such as the euro, pound, and yen held in foreign exchange reserves. 

Notably, gold reserves showed an increase, rising to USD 67.57 billion during the same period.

The current financial landscape reflects complex market dynamics, with foreign investors injecting Rs 1.39 lakh crore into India's debt and equity markets year-to-date. 

However, recent months have witnessed significant outflows, with November seeing Rs 21,444 crore moving out of Indian bonds and equities, following a substantial withdrawal of Rs 96,358 crore in October.

The Indian rupee has experienced considerable pressure amid a strong dollar and persistent foreign outflows. 

The RBI has typically intervened in the currency market, utilising its dollar reserves to stabilise the local currency and mitigate high volatility.

These developments underscore the ongoing challenges in India's financial markets and the delicate balance of managing foreign exchange reserves in a dynamic global economic environment.

(KNN Bureau)