India’s forex reserves decline by over USD 1 billion, rupee at 73.46 against USD

The Reserve Bank of India’s (RBI) forex reserves declined to $641.113 billion from $642.453 billion reported for the week ended September 3.

India’s forex reserves comprise foreign currency assets (FCAs), gold reserves, SDRs, and the country’s reserve position with the IMF.

On a weekly basis, FCAs, the largest component of the forex reserves, edged lower by $934 million to $578.879 billion. Similarly, the value of the country’s gold reserves declined by $413 million to $37.669 billion. However, the SDR value inched up by $1 million to $19.438 billion. In addition, the country’s reserve position with the IMF rose by $5 million to $5.127 billion. 

The Indian rupee inched higher by 6 paise to 73.46 against the US dollar in opening trade on Friday, tracking a firm trend in domestic equities. Forex traders said the broad weakness of the American currency in the overseas market and sustained foreign fund inflows supported the local unit, while firm crude oil prices restricted the gains.