The country's foreign exchange reserves declined by $2.92 billion to $652.9 billion in the week ended June 14 after rising to the highest level continuously in the previous weeks. The latest figures show a resumption of the rising trend.
Earlier, India's foreign exchange reserves had increased by $ 4.3 billion to reach an all-time high of $ 655.8 billion during the week ending June 7.
The increase in foreign exchange reserves reflects the strong fundamentals of the economy and gives more scope to the RBI to stabilize the rupee if it becomes volatile.
A strong foreign exchange reserves enables the RBI to intervene in the spot and forward currency markets by releasing more dollars to prevent the rupee from falling heavily.
Conversely, a decline in foreign exchange reserves leaves the RBI with less room to intervene in the market to support the rupee.
"India's external sector remains resilient and overall, we are confident of meeting our external financing requirements comfortably," Das said at a press conference after the monetary policy meeting earlier this month.
India's current account deficit is expected to decline to $23.2 billion (0.7 per cent of GDP) during 2023-24 from $67 billion (2 per cent of GDP) last year due to lower merchandise trade deficit, the RBI said on Monday.
India's merchandise exports rose over 9 per cent in May, paving the way for a strong balance of payments position, commerce ministry data showed.
Earlier, India's foreign exchange reserves had increased by $ 4.3 billion to reach an all-time high of $ 655.8 billion during the week ending June 7.
The increase in foreign exchange reserves reflects the strong fundamentals of the economy and gives more scope to the RBI to stabilize the rupee if it becomes volatile.
A strong foreign exchange reserves enables the RBI to intervene in the spot and forward currency markets by releasing more dollars to prevent the rupee from falling heavily.
Conversely, a decline in foreign exchange reserves leaves the RBI with less room to intervene in the market to support the rupee.
"India's external sector remains resilient and overall, we are confident of meeting our external financing requirements comfortably," Das said at a press conference after the monetary policy meeting earlier this month.
India's current account deficit is expected to decline to $23.2 billion (0.7 per cent of GDP) during 2023-24 from $67 billion (2 per cent of GDP) last year due to lower merchandise trade deficit, the RBI said on Monday.
India's merchandise exports rose over 9 per cent in May, paving the way for a strong balance of payments position, commerce ministry data showed.
