India's forex reserves slip $5 bn in a week amid RBI interventions

Most emerging market currencies have faced pressure since the start of the war in Ukraine in late February as investors have rushed to safe-haven assets

India’s foreign exchange reserves declined $5 billion to $588.31 billion during the week ended July 1, the latest data released by the Reserve Bank of India (RBI) showed.

The fall in forex reserves was mainly because of a decline in foreign currency assets worth $4.5 billion, the data showed. This was likely on account of the central bank stepping up intervention in the foreign exchange market. The central bank has been selling dollars to curb excessive volatility in the exchange rate and prevent runaway depreciation in the rupee.

In the week ended July 1, the rupee depreciated 0.9 per cent versus the