India’s Forex Reserves Decline to $719.75 Billion

India’s foreign exchange reserves continued to decline, falling by $1.269 billion to $719.748 billion in the week ended October 30, according to data released by the Reserve Bank of India (RBI). The latest decline follows a sharper reduction of $5.011 billion recorded in the preceding week.

The country’s forex reserves had reached a record high of $785.706 billion on September 4 and have declined since then. Experts attribute the recent fall partly to the RBI’s intervention in the foreign exchange market, including the sale of US dollars to help prevent further depreciation of the rupee. Such interventions can reduce the country’s foreign currency assets.