India’s forex reserves drop by USD 3.4 billion

MUMBAI: Indicating serious intervention in the forex market to defend the rupee that has plumbed to record lows in the week, the forex reserves have come off the record highs, falling by $3.4 billion to $667.39 billion for the week ending July 26.

The monetary authority intervenes in the forex market to manage liquidity and prevent excessive volatility in the rupee. During the week, the rupee had plunged to its lifetime low and traded in the 83.70 range. Its worst close was today (Friday plumbing to 83.746).

In the previous reporting week, the foreign exchange reserves had hit an all-time high of $670.86 billion.

According to the weekly statistical supplement issued by the Reserve Bank on Friday, after jumping to a record high in the week to July 19, the forex reserves dipped by $3.47 billion to $667.39 billion for the week to July 26.