India's forex reserves drop to over seven-month low

he forex reserves also include India's reserve tranche position in the International Monetary Fund.

India's foreign exchange reserves fell for a third consecutive week and stood at a more-than-seven-month low of $644.39 billion as of Dec. 20, data from the Reserve Bank of India (RBI) showed on Friday.

The reserves declined by $8.5 billion in the reporting week, logging their biggest weekly fall in over a month. They had declined by a total of $5.2 billion in the prior two weeks.

Changes in foreign currency assets are caused by the central bank's intervention in the forex market as well as the appreciation or depreciation of foreign assets held in the reserves.

The RBI intervenes on both sides of the forex market to curb undue volatility in the rupee.Last week, the rupee declined 0.2% and also hit a then all-time low of 85.10 per U.S. dollar.

Since slipping below the 84 handle in mid-October, the rupee has been on a downward spiral amid concerns over India's growth slowdown, foreign outflows, U.S. President-elect Donald Trump's trade policies and a hawkish Federal Reserve.

Regular interventions from the RBI have, however, kept the rupee's decline in check.The domestic unit settled at 85.5325, down 0.3% on the day, its worst single-day fall since June 4. The rupee was down nearly 0.3% on the week, its eighth consecutive weekly fall.The forex reserves also include India's reserve tranche position in the International Monetary Fund.