India's foreign exchange reserves have declined for the third consecutive week due to selling by foreign portfolio investors (FPIs). In the week ended october 18, 2024, the foreign exchange reserves fell by $2.163 billion to $688.267 billion from $690 billion in the previous week.
The reserve bank of india (RBI), the regulator of the banking sector, has released the data of foreign exchange reserves. According to this data, in the week ended october 18, the forex reserve has decreased by $2.163 billion to $688.267 billion. There has also been a decline in foreign currency assets and it has come down by $3.885 billion to $598.23 billion. Foreign currency assets have come down below $ 600 billion.
According to RBI's gold Reserve, there has been a strong jump in gold reserves during this period. RBI gold Reserve has increased by $ 1.786 billion to $ 67.44 billion. SDR has decreased by $ 68 million to $ 18.27 billion and IMF's reserve has come down by $ 16 million to $ 4.31 billion. In the first week of october, the foreign exchange reserve had crossed $ 700 billion. But since then it has seen a continuous decline. In three weeks, the forex reserve has decreased by more than $ 16 billion.
As a result of the sell-off in the indian stock market, the rupee has closed at the level of 84.08 against one dollar in the currency market. In the month of october, foreign portfolio investors have withdrawn their money by selling shares worth more than Rs 1 lakh crore, due to which on one hand the stock market is witnessing a decline and on the other hand it has also affected the foreign exchange reserves. Foreign portfolio investors are withdrawing money from the indian market and investing in China.
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