Business: India's foreign exchange reserves saw a decline of USD 2.163 billion, bringing the total down to USD 688.267 billion for the week ending October 18, the Reserve Bank of India (RBI) stated on Friday. This follows a significant drop in the prior week, when reserves fell by USD 10.746 billion to USD 690.43 billion, marking one of the most notable reductions in recent times.

The RBI did not specify the reasons behind this ongoing decrease, though it may relate to fluctuations in global markets or the central bank's efforts to stabilise the rupee. In the preceding week, the reserves had dropped by USD 3.709 billion to USD 701.176 billion. At the end of September, the reserves had hit an all-time high of USD 704.885 billion.

For the week ended October 18, foreign currency assets, a major component of the reserves, decreased by USD 3.865 billion to USD 598.236 billion, the data released on Friday showed. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves increased by USD 1.786 million to USD 67.444 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were down by USD 68 million to USD 18.271 billion, the apex bank said. India's reserve position with the IMF was down by USD 16 million to USD 4.316 billion in the reporting week, the apex bank data showed.