India's forex reserves goes below $350 billion again

KOLKATA: India's foreign exchange reserves dipped for the second consecutive week as Reserve Bank of India was seen selling dollars to prevent the local currency from depreciating sharply.

Reserves fell by $2.9 billion in the week to September 4 to $349 billion, RBI said in its latest weekly statistical report. Dollar selling by the central bank wiped out $6.3 billion in last two reporting weeks.

The fall in reserves also reflect the change in valuation of euro, pound and other global currencies which form foreign currency assets.

Dealers in the forex market said that RBI was seen intervening in the market since the local currency came under intense pressure following China's decision to devalue yuan.

Foreign currency assets, which accounts for 93 per cent of reserves, fell $2.6 billion to $325.7 billion in the reporting week. Foreign currency assets, reflect the effect of appreciation and depreciation of non-US currencies such as the euro, pound and the yen, held in the reserves.