India’s foreign exchange reserves fall for third week

MUMBAI (Reuters) – India’s foreign exchange reserves fell for a third straight week and stood at $601.5 billion as of Aug. 4, data from the country’s central bank showed on Friday.

They fell by $2.4 billion from the week earlier.

The changes in foreign currency assets, expressed in dollar terms, include the effects of appreciation or depreciation of other currencies held in the Reserve Bank of India’s (RBI) reserves.

Foreign exchange reserves include India’s Reserve Tranche position in the International Monetary Fund.

The central bank also intervenes in the spot and forwards markets to prevent runaway moves in the rupee.

RBI Governor Shaktikanta Das said on Thursday that the accretion to forex reserves has provided a buffer against external shocks. The Indian rupee has remained stable since January, he added.

In the week for which the forex reserves data pertains, the rupee lost 0.5% against the dollar. It had fallen to an over two-month low of 82.8425, prompting the central bank to intervene, traders had said.

The rupee ended at 82.84 on Friday, down 0.17% for the week.

(Reporting by Siddhi Nayak; Editing by Maju Samuel)