India's foreign exchange reserves (INFXR=ECI) fell to $688.10 billion as of November 21, down $4.48 billion from $692.58 billion the prior week, per RBI data. The decline reflects RBI interventions to stabilise the rupee amid dollar strength, offsetting recent gold-driven gains while maintaining ample import coverage.
Reserve Bank of India's weekly statistical data shows total forex reserves dropping to $688.10 billion for the week ended November 21, reversing a $5.54 billion rebound to $692.58 billion seen in the prior reporting period. The pullback follows three weeks of declines earlier in November, driven by central bank dollar sales to curb rupee depreciation pressures from a resurgent US dollar and capital outflows.
Despite the dip, reserves comfortably cover 11+ months of projected imports and remain among the world's largest. Foreign currency assets—a key component—likely bore the brunt, with gold valuations providing some buffer after recent surges. RBI's active management underscores its focus on orderly market conditions without a fixed exchange-rate target.
The trajectory will be watched closely ahead of December policy reviews, as sustained interventions could pressure liquidity while a softer dollar offers potential replenishment.
Key highlights
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Total reserves: $688.10 bn (Nov 21) vs $692.58 bn (Nov 14), down ~$4.48 bn WoW.
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Recent context: Follows $5.54 bn rebound last week after multi-week declines.
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Likely drivers: RBI FX interventions for rupee stability amid USD strength.
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Coverage: Still supports 11+ months of imports; 4th largest globally.
Sources: RBI Weekly Statistical Supplement; Trading Economics; Informist; Business Standard; Economic Times.