Forex reserves fall to lowest in 10 months

INDIA'S FOREIGN EXCHANGE reserves extended their losing streak for a sixth straight week and stood at a 10-month low of $625.87 billion as of January 10, data from the Reserve Bank of India showed on Friday.

- REUTERS

The reserves declined by $8.72 billion in the reported week, the most in two months. They have fallen by a cumulative $23.5 billion in the prior five weeks, and are down by $79 billion from their all-time high of $704.89 billion hit in late September.

Changes in foreign currency assets are caused by the central bank's intervention in the forex market as well as the appreciation or depreciation of foreign assets held in the reserves. The RBI intervenes on both sides of the forex market to curb undue volatility in the rupee.