Foreign exchange reserves see highest fall of $5.1 billion in 7 years

The rupee has been facing intense selling pressure for more than a month now

The country’s foreign exchange reserves fell $5.1 billion in the week ended October 12. This is the highest dip in seven years, according to data released by the Reserve Bank of India (RBI). Total forex reserves declined from $399.6 billion in the previous week to $394.46 billion on October 12. This is also the lowest foreign exchange level since over a year, caused mainly because of a fall in foreign currency assets.

According to the RBI’s latest monthly bulletin, the central bank sold $1.28 trillion worth of US dollars from end March to August. Total foreign reserves have fallen by