In the week ended 30 August, India's foreign exchange reserves fell by $446 million to $428.604 billion, mainly on account of a drop in foreign currency assets, data released by the Reserve Bank of India on Friday showed.
In the previous week, there was a steep decline of $1.45 billion to $429.050 billion in the reserves. In the month of August, forex reserves maintained by the RBI had touched a life-time high of $430.572 billion.
Foreign currency assets, a major component of overall forex reserves, saw a $1.124 billion decline to $396 billion for the 30 August-ended week.
Foreign currency assets are expressed in US dollar terms and include the effect of appreciation or depreciation of non-US units like the euro, pound and the yen held in the foreign exchange reserves.
According to the data released by RBI, gold reserves during the week increased by $682 million to $27.55 billion.
The special drawing rights with the International Monetary Fund remained unchanged at $1.433 billion during the week.
The country's reserve position with the Fund decreased marginally by $5 million to $3.617 billion.