The country's foreign exchange reserves declined by $678 million to $634.29 billion in the week ended January 21, according to RBI data.
In the previous week ended January 14, the reserves had increased by $2.23 billion to $634.96 billion.
It touched a lifetime high of $642.45 billion in the week ended September 3, 2021.
During the reporting week ended January 21, the dip in the reserves was on account of a drop in the Foreign Currency Assets (FCA), a major component of the overall reserves, as per the Reserve Bank of India's (RBI) weekly data released on Friday.
FCA declined by $1.15 billion to $569.58 billion in the reporting week.
Expressed in dollar terms, FCA include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Gold reserves increased by $567 million to $40.34 billion in the reporting week, the data showed.
The Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) declined by $68 million to $19.15 billion.
The country's reserve position with the IMF also dipped by $22 million to $5.22 billion in the reporting week, the data showed.
Photograph: Dado Ruvic/Reuters