India’s forex reserves hit eight-month low at $640.28 billion

Investing.com — The Reserve Bank of India (NS:) (RBI) reported on Friday that the country’s foreign exchange reserves have fallen for the fourth week in a row, reaching an eight-month low of $640.28 billion as of December 27.

The reserves saw a decrease of $4.1 billion in the week reported, following a cumulative drop of $13.7 billion in the preceding three weeks. The decline in foreign currency assets can be attributed to the RBI’s intervention in the forex market and the fluctuation in value of foreign assets within the reserves.

The central bank’s intervention aims to manage excessive volatility in the rupee, India’s domestic currency. Despite these efforts, the rupee weakened to a historic low of 85.8075 last week, marking a nearly 0.3% drop during that period.

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