India’s forex reserves fall to $398.8 billion

 

Reserve Bank of India data showed that India’s foreign exchange reserves fell for the second straight week to $398.761 billion.

The reserves, which act as a cushion against dollar outflows, fell $1.560 billion in the last two weeks amid concerns over tightening of global monetary easing.

While RBI does not provide reasons behind fall in reserves, forex traders said the fall indicates that RBI must have sold more dollars than what it had purchased over the last fortnight.

The fall was also due to changes in valuation of reserves held in other global currencies such as euro and pound sterling.