RBI’s foreign exchange reserves dipped for the second week as the central bank sold dollars to manage the volatility in the forex market arising out of the war in Ukraine. According to data released by the RBI, forex reserves fell by $2.6 billion during the week ended March 18 to $619.6 billion. This was on the back of a $9.6 billion decline in the preceding week.
The latest decline is, however, more on account of the fall in the value of gold holdings. The value of gold held by the RBI fell by $1.7 billion to $42 billion. Foreign currency assets saw a $703-million dip during the quarter to $553 million.
In the forex market, the rupee closed 16 paise stronger at 76.21 compared to last Thursday’s close of 76.37. The rupee gained in weekend trading following a fall in crude oil prices and weakness in the US currency in the overseas markets.
