Forex reserves decline $5.24 bn to $617.23 bn

India's forex reserves declined $5.24 billion to $617.23 billion for the week ending February 9, according to weekly data released by the Reserve Bank of India (RBI) on Friday.

The forex kitty stood at $622.5 billion for the week ended February 2.

However, in the current fiscal, the forex reserves have increased $50.28 billion, the RBI data showed.

Foreign currency assets, which constitute the largest component of the reserves, dropped $4.07 billion to $546.52 billion during the week under review, as per the latest data.

The reserves had peaked in October 2021, when kitty had reached $645 billion.

The reserves took a hit as the central bank sold dollars to defend the rupee amid pressures caused majorly by global developments since last year.

As a result, the rupee has been the best Asian currency so far this fiscal.

The sharp fall in the overall reserves was due to a sharp decline in foreign currency assets, which are the single largest component of the reserves.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and the yen held in the foreign exchange reserves.

The country's reserve position with the IMF also declined $28 million to $48.32 billion in the reporting week.