India’s forex reserves drop $2bn, snap eight-week streak of gains

MUMBAI (Reuters): India’s foreign exchange reserves declined by $2.07 billion, to $686.06 billion as of May 2, snapping an eight-week gaining streak that had lifted reserves to a near six-month high, data released by the central bank on Friday showed.

The reserves had risen by nearly $50 billion in the nine weeks preceding the reporting week and are now about $19 billion below the all-time high of $704.89 billion hit in late September 2024.

Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in its reserves.

For the week to which the reserves data pertains, the rupee had risen about 1%, bolstered by inflows into Indian equities and optimism about a U.S.-India trade deal.

The rupee closed at 85.37 per dollar on Friday, down 0.9% on the week on the back of depreciation pressure sparked by the conflict between India and Pakistan.