Marking the first drop in three weeks, India's forex reserves fell at the sharpest rate since May 2013 amid the RBI's intervention to stem the steep volatility in the rupee due to the ongoing global financial market turmoil.
Forex reserves fell by USD 3.433 billion to USD 351.92 billion in the week ended August 28, 2015, data from the Reserve Bank of India (RBI) showed.
In the prior week, the country's foreign exchange reserves had risen by USD 920.6 million to USD 355.353 billion from the previous week.
The sharp drop in foreign exchange reserves last week was triggered by interventions by the central bank to curb the volatility in the local currency as the yuan devaluation saga had weakened the rupee significantly.
Foreign currency assets, which are expressed in dollar terms and include the effect of appreciation or depreciation of non US currencies such as euro, pound and yen held in reserves, fell by USD 3.424 billion to USD 328.306 billion in the week ended August 28, 2015 from the previous week, the RBI added.
Foreign currency assets are the biggest component of the overall forex reserves.
India's gold reserves stood unchanged at USD 18.250 billion in the week ended August 28, 2015 from the previous week, data showed.