India’s forex kitty falls $2.6 billion to $682 billion as of November 1

Mumbai: Reserve Bank Of India’s (RBI) foreign exchange reserves fell by $2.6 billion to $682.1 billion for the week ended November 1, latest central bank data showed. The central bank likely sold dollars to prevent a sharp depreciation in the rupee, traders said.The rupee depreciated 0.01% in the week ended November 1 closing at 84.07 per US dollar, after briefly touching an all-time intraday low during the week, LSEG data showed.

Indian stocks and bonds saw outflows from foreign portfolio investors, and dollar sales from the RBI may have likely prevented a sharp depreciation in the rupee, currency traders said.

From the total reserves, foreign currency assets declined $.3.9 billion to $589.8 billion, while gold reserves rose $1.2 billion to $69.7 billion, data showed.