Forex reserves fall sharply by $3.433 billion to $351.92 billion
India's foreign exchange reserves (FER) fell by a whopping $3.4
billion in a single week ending August 28.
It happened due to Reserve Bank of India's dollar
sale and the change in valuation of euro, pound and yen against the dollar
Reserve Bank of India was seen selling dollars to prevent
the rupee from depreciating freely.
Forex reserves now stands at $351.9
billion, the latest data showed.
Foreign currency assets, which accounts for 93% of reserves,
fell by $3.4 billion to $328.3 billion in the reporting week. Foreign currency
assets, also reflect the effect of appreciation and depreciation of non-US
currencies such as the euro, pound and the yen, held in the reserves.
The country's current
level of reserves is enough to pay for nine months of imports.