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India's foreign exchange reserves fell by more than $8 billion to $688.8 billion in the week ending May 15, data from the Reserve Bank of India showed on Friday.
In rupee terms, the decline in the foreign exchange reserves amounts to Rs 24,874 crore.
Foreign currency assets, which are the largest component of the reserves, depleted by $6.4 billion to $545.9 billion between May 8 and May 15.
The gold reserves fell by $1.5 billion to $119.3 billion during the period.
The central bank said that India’s foreign exchange reserves “remain comfortable”, extending cover for goods imports for about 11 months and 90% of the external debt outstanding as of end of December.
The financial conditions, crude oil prices and capital flows continue to pose challenges to the external sector outlook, the bank said on Friday.
“Nevertheless, robust services exports, positive net FDI [foreign direct investment] flows, foreign exchange reserve buffers and a number of proactive policy measures undertaken by the government and the Reserve Bank are likely to cushion the Indian economy against external headwinds,” it added.
Written by Nachiket Deuskar. Edited by Leah Thomas.
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