India forex reserves fall $2.69 billion to $717.06 billion
In short
India’s foreign exchange reserves fell by $2.691 billion to $717.056 billion in the week ended October 30, the RBI said on Friday. The week before, reserves had already dropped by $1.269 billion to $719.748 billion.
The stockpile is still below its record $785.706 billion set in early September.
What the reporting says
India’s foreign exchange reserves fell by $2.691 billion to $717.056 billion in the week ended October 30, the RBI said on Friday. The previous week’s reserves had declined by $1.269 billion to $719.748 billion. The reserves had earlier touched a record $785.706 billion in the week ended September 4 and have been falling since then, with experts linking the drop to deployment of FCNR(B) resources.
Why it matters
The RBI reported that India’s foreign exchange reserves declined for another week, falling to $717.056 billion by October 30. The stockpile had also dropped in the previous week, after reaching a record $785.706 billion on September 4. The decline matters for the rupee, external stability and market confidence, and experts cited deployment of FCNR(B) resources as a possible reason.