India's forex reserves plunge by another $2.59 billion

India's foreign exchange (forex) reserves slumped by $2.59 billion in the week ended March 18, logging a sharp fall for the second successive week as the Reserve Bank of India (RBI) heavily sold dollars to thwart slide in the value of rupee. 

The country's forex reserves plunged by $2.597 billion to $619.678 billion during the week ended March 18, according to the RBI's weekly statistical supplement, ANI reported. The value of gold reserves as well as foreign currency assets fell sharply.  

India's forex reserves had declined by $9.646 billion for the week ended March 11, which was the steepest slide in nearly two years.

Also Read: RBI warns against unauthorised platforms offering forex trading facilities

The sharp dip in the country's forex reserves coincides with the week during which the rupee plunged to an all-time low. The Indian rupee nosedived to a record low of 77.02 against a US dollar on March 7. 

The biggest component of forex reserves - the foreign currency assets - slumped by $703 million to $553.656 billion during the week ended March 18. The foreign currency assets had slid by $11.108 billion in the previous week. 

Meanwhile, the value of gold reserves plunged by $1.831 billion to $42.011 billion during the week under review.

Their value had increased by $1.522 billion in the week ended March 11 owing to a steep hike in gold prices in the international markets. 

Also Read: Forex reserves decline $9.65 bn to $622.27 bn: RBI

The value of India's Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) dipped by $62 million to $18.865 billion. 

However, the country's reserve position in the IMF continued to be constant at $5.146 billion during the week ended March 18, according to the RBI data.