Foreign exchange reserves fall below $400 billion as RBI intervenes

The reserves are expected to fall further, as the RBI stepped up its intervention this week

Foreign exchange reserves fell below $400 billion, for the first time since November 11, 2017, in the first week of September.

As on September 7, foreign exchange reserves stood at $399.28 billion, a result of the Reserve Bank of India’s intervention at a time when portfolio flows were witnessing some reversals.

The reserves had peaked at $426 billion in mid-April, when rupee was at around 65 a dollar. However, it started falling once the central bank had to intervene in the market to check the rapidly falling rupee, starting May. The currency fell to its record low of 72.91 earlier