India forex reserves drop $7.8 bn; rupee weakens to 94.47 against the dollar

Kolkata: India’s foreign exchange reserves fell by $7.794 billion to $690.693 billion in the week ending May 1, according to data released by the Reserve Bank of India on Friday. According to this data, the local currency closed at 94.47, with a decrease of 25 cents against the dollar.

This was the second consecutive weekly decline in the forex stock, which reached an all-time high of $728.49 billion on February 27, just before the outbreak of the Iran war.

The central bank is increasing its reserves to prevent volatility in the foreign exchange market. The local currency fell to a record low of 95.40 on May 5.
On the other hand, foreign exchange assets, which make the biggest contribution to reserves, decreased by 2.797 billion dollars to 551.825 billion dollars in the week examined. According to RBI data, gold reserves decreased by $5.021 billion to $115.216 billion.