India's foreign exchange reserves fall to $652 billion: RBI


New Delhi: According to the latest data released by the Reserve Bank of India, India's foreign exchange reserves fell by $1.7 billion to $652 billion in the week ended June 28. This incident has happened at a time when the country's debt is included in JP Morgan's emerging market index.

Last week, the foreign exchange reserves increased by $810 million. On June 7 this year, the foreign exchange reserves rose by $4.3 billion to a record high of $655.82 billion.

Meanwhile, gold reserves fell by $427 million to $56.53 billion, while SDRs fell by $35 million to $18.01 billion. The reserve position at the IMF rose by $1 million to $4.57 billion.

Changes in foreign currency assets are affected by central bank intervention and appreciation or depreciation in the value of foreign assets held in reserve. RBI is also actively involved in the foreign exchange market to manage extreme fluctuations in the value of the rupee.

Additionally, India's reserve position in the International Monetary Fund contributes to the overall foreign exchange reserves.

Despite signals from foreign exchange market indicators that indicated inflows were mainly driven by passive funds buying the bonds following their inclusion in JPMorgan's Emerging Markets Index, various market players found that the actual volume of inflows was much lower than expected.

The rupee closed at 83.4850 on Friday, registering a decline of 0.1% for the week.
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