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The Economic Times

India's forex reserves fall below $350-billion mark after 15 weeks

The reserves fell $1.44 billion in the week to January 8, taking the total fall in last fortnight to $3.22 billion.
The reserves fell $1.44 billion in the week to January 8, taking the total fall in last fortnight to $3.22 billion.
KOLKATA: India's foreign exchange reserves have fallen below the $350 billion mark after 15 weeks with overseas investors withdrawing dollar-denominated investment from local market prompting Reserve Bank of India to intervene in the market to soften the fall of the local currency.

The reserves fell $1.44 billion in the week to January 8, taking the total fall in last fortnight to $3.22 billion. The reserves, which act as a cushion against dollar outflows and provides the critical import cover, now stood at $348.934 billion, RBI said in its weekly data.

Reserves were at $349.979 billion on September 25, 2015, after which it was always remained above the $350-billion level.

The RBI sold dollars from the reserves to support rupee and prevent it from depreciating too sharply.

The rupee on Friday closed at 67.77 a dollar, compared to last Friday's 66.69 as dollar outflows putting pressure on the local currency.

Pressure on rupee intensified ever since the People's Bank of China devalued yuan to make its exports attractive.
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