Foreign exchange reserves decline to seven-week low

Foreign exchange reserves witnessed a third consecutive weekly decline, hitting seven-week low of $637.92 billion as of April 26, according to data released by central bank on Friday.

During reported week, reserves decreased by $2.41 billion, following a total decline of $8.2 billion over previous two weeks.

Reserve Bank of India (RBI) intervenes in foreign exchange market to manage excess volatility in rupee.

Improvements in tre deficit, inflows into bonds, and reduced pressure on rupee in offshore markets have lessened necessity for aggressive intervention by RBI in foreign exchange market, as reported by Reuters.

Changes in foreign currency assets are influenced by RBI interventions and fluctuations in value of foreign assets held in reserves. ditionally, India's foreign exchange reserves encompass its reserve tranche position in International Monetary Fund.

During week in question, rupee tred within a range of 83.2525 to 83.4450 against dollar, registering a modest 0.2% increase. currency closed at 83.4225 on Friday, recording a slight weekly decline.

(With Reuters inputs)