Forex Reserves Shrink by $69 Million.

 MUMBAI: After a rise last week, India's foreign exchange reserves dropped $69 million to $306.77 billion during the week ended December 9, 2011, mainly on account of revaluation of currencies in the reserves.

According to data released by the Reserve Bank of India (RBI), foreign currency assets which includes the effect of appreciation or depreciation of non-US currencies such as euro, sterling, yen held in the reserves fell by $56 million.

While gold remained unchanged at $28 billion, special drawing rights, the reserve currency with the International Monetary Fund, fell by $8 million to $4.49 billion at the end of the week.

The reserve position in the International Monetary Fund (IMF) dropped by $5 million to $2.6 billion during the week. The rupee has weakened against the dollar by 3.4% in the week till Thursday.

The Reserve Bank of India is believed to have stepped into the market to arrest the volatility in the currency.

Source : economictimes.indiatimes.com