India's forex reserves slip $14.89 billion to $765.9 billion

The Reserve Bank of India reported a substantial contraction in the nation's forex reserves for the week ended September 18, marking a steeper decline compared to the previous reporting period. Foreign currency assets, which constitute the largest component of overall reserves, fell by $14.816 billion to $630.980 billion during the same week.

The movement in foreign currency assets reflects the combined effects of market operations and currency fluctuations, as the reserve holdings include non-dollar denominated assets such as the euro, British pound, and Japanese yen. Appreciation or depreciation of these currencies against the dollar directly impacts the dollar-denominated value of India's total reserves.

On a more positive note, India's gold reserves increased marginally during the period, rising by $68 million to $111.292 billion. However, Special Drawing Rights held with the International Monetary Fund declined by $106 million to $18.739 billion. India's reserve position with the IMF remained stable at $4.89 billion.

The recent decline follows a drop of $4.924 billion recorded in the previous week, when reserves had fallen to $780.782 billion. The accelerated pace of deterioration in recent weeks highlights the volatility in India's external account position, reflecting broader currency market dynamics in global financial markets.