Forex reserves drop by USD 1.19 bn to USD 400.10 bn

The country's foreign exchange reserves fell by USD 1.191 billion to USD 400.101 billion in the week to August 31 due to a decline in foreign currency assets and gold reserves, according to RBI data.

In the previous week, the forex reserves had increased by USD 445.4 million to USD 401.293 billion.

The decline in the country's forex reserves in the past few weeks is on account of the Reserve Bank of India selling U.S dollars to contain depreciation in the rupee, which touched a lifetime low of 72.11 against the greenback in intra-day trade on Thursday.

In the week ended August 31, foreign currency assets, a major component of the overall reserves, dipped by USD 605.1 million to USD 375.986 billion, as per the RBI data.