Reserve Bank of India data shows forex reserves fall $5.011 billion to $721.016 billion

Key facts

• India's foreign exchange reserves declined by $5.011 billion to $721.016 billion in the week ended October 16, according to Reserve Bank of India (RBI) data released on Friday.
• In the previous reporting week, reserves had declined by $8.578 billion to $726.027 billion.
• Reserves had touched an all-time high of $785.706 billion for the week ended September 4, boosted by a special concessional swap for diaspora deposits through which banks raised a record nearly $133 billion.
• Foreign currency assets, the major component of reserves, decreased by $5.758 billion to $591.847 billion for the week ended October 16.
• Gold reserves rose $706 million to $105.8 billion during the week.
• Special Drawing Rights (SDRs) increased by $30 million to $18.578 billion.
• India's reserve position with the IMF increased by $11 million to $4.791 billion.
• Experts attribute the sharp decline to deployment of FCNR(B) resources and currency defence by the RBI through dollar sales.