Forex reserves drop by $4.11 billion to $640.27 billion

India's forex reserves dropped by $4.11 billion to $640.28 billion during the week ended December 27, the Reserve Bank said on Friday.

In the previous reporting week, the overall kitty had dropped by $8.48 billion to $644.39 billion.

The reserves have been declining for the last few weeks, and the drop has been attributed to revaluation along with forex market interventions by RBI to help reduce volatility in the rupee.

The forex reserves had increased to an all-time high of $704.88 billion in end-September.

For the week ended December 27, foreign currency assets, a major component of the reserves, decreased by $4.64 billion to $551.92 billion, the data released on Friday showed.

Expressed in dollar terms, the foreign currency assets 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 $541 million to $66.27 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) were down by $12 million to $17.87 billion, the apex bank said.

India's reserve position with the IMF was unchanged at $4.22 billion in the reporting week, the apex bank data showed.