India's foreign exchange reserves have experienced a significant decline, falling by $17.761 billion to $657.892 billion for the week ending November 15, 2024, as reported by the Reserve Bank of India (RBI).

The decline in reserves is attributed to a stronger dollar index and capital outflows, prompting the RBI to intervene in the forex market to mitigate volatility.

The RBI has been actively selling dollars in the spot market to stabilize the rupee, particularly as it approached a critical support level of 84.50 against the dollar.

This drop marks the eighth consecutive week of declining reserves, which have decreased from an all-time high of $705 billion on September 27 to $656.58 billion as of November 22, 2024.

Last week, the rupee hit a record low of 84.5075, influenced by stock outflows related to a drop in Adani group shares and uncertainties surrounding the Federal Reserve's interest rate policies.

During the same period, gold reserves decreased by $2.068 billion, reaching $65.746 billion, contributing to the overall decline in total reserves.

However, there was a slight offset as gold reserves increased by $1.828 billion to $67.573 billion during the week, indicating some resilience amidst the overall downturn.

India's forex reserves consist of various components, including foreign currency assets, gold, Special Drawing Rights (SDRs), and the reserve tranche position in the International Monetary Fund.

The fluctuations in foreign currency assets are influenced by the central bank's market interventions and the changing values of foreign currencies.

These figures underscore a continuing downward trend in India's foreign exchange reserves, reflecting broader economic challenges.

In contrast, Pakistan has seen a notable recovery in its foreign exchange reserves, increasing by around $29 billion in the same timeframe, with total liquid reserves estimated at approximately $16 billion.

This recent weekly decline in India's reserves surpasses the previous record fall of $15.5 billion during the global financial crisis in October 2008.