India’s foreign exchange reserves extended declines for the week ended November 7, down by $2.70 billion to $687.03, the Reserve Bank of India (RBI) said on Friday.

The decline is attributed to pressure from a stronger dollar and valuation changes.

The drop follows a $5.62 billion decline in the previous reporting week, extending the recent soft patch in reserves after they touched a record high of over $700 billion earlier this year. Despite the fall, India continues to hold one of the largest FX reserve stockpiles globally, providing a sizable cushion against global volatility, rising US yields and geopolitical risks.

Foreign currency assets, the largest component of India’s reserves, fell by $2.45 billion to $562.14 billion. The RBI said the changes in foreign currency assets reflect

See Full Page