India's forex reserves shed $60 billion in six weeks as RBI steps in to support rupee, one of Asia's worst-performing currencies this year

India's foreign exchange reserves shaved off about $60 billion in the past six weeks on account of Reserve Bank of India's aggressive intervention on the currency market and protecting the rupee, one of the worst performing Asian currencies this year.

The central bank's forex kitty stood at 726.027 billion at the end of October 9 as compared with the lifetime high of $785.706 billion as of September 4, official data showed.

The stockpile was depleted by $8.578 billion in the reporting week, according to the RBI's weekly statistical supplement.


Read more - India's forex reserves fall by USD 8.58 billion to USD 726.03 billion in week ended October 9: RBI

Foreign currency assets, the largest contributor to the country's reserves, fell $7.142 billion in that week to $597.605 billion. This kitty was depleted by $50.563 billion over the past six weeks, reflecting 35% of $143.596 billion that was garnered by the central bank between June and August by way of the dedicated dollar mobilisation schemes cum swap window.

The depletion was largely due to dollar sales by the central bank through large public sector banks to support the rupee, which was facing multiple headwinds in the form of higher crude oil prices, rising US yield and persistent outflows of foreign capital.

NSDL data showed that foreign portfolio investors withdrew a net $26.8 billion from the local markets this year so far.

India's gold reserves also came down by $1.319 billion in the reporting week to $ $105.094 billion. The country's reserve position with the International Monetary Fund and special drawing rights also fell during the week.