Mumbai, Jan 12 (SocialNews.XYZ) India's foreign exchange reserves fell by $5.9 billion to $617.30 billion during the week ended January 5, according to the RBI data released on Friday.
This is the first fall in the country’s forex which had grown steadily by a total of $32.9 billion in the preceding seven weeks to scale a 22-month high.
A strong foreign exchange kitty helps the RBI to control volatility in the rupee.
The central bank intervenes in the spot and forward currency markets by releasing more dollars to prevent the rupee from going into a free fall when it comes under pressure.
Apart from the RBI's intervention, the foreign exchange reserves are also affected by the appreciation or depreciation of foreign assets held in the reserves.
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz