India's Forex Reserves Drop To One-Month Low Of $589.14 Billion

India's foreign exchange reserves (INFXR=ECI) declined for the second week in a row, reaching a one-month low of $589.14 billion on May 26, according to Reserve Bank of India (RBI) data released on Friday.

This was a $4.34 billion decline from the prior week. Reserves declined by $6.05 billion in the week ended May 19, the most in more than three months, reuters reported.

The central bank intervenes in spot and future markets to prevent uncontrolled swings in the rupee.

The changes in foreign currency assets, stated in dollars, include the impact of other currencies held in the RBI's reserves appreciating or depreciating.

Foreign exchange reserves include India's stake in the International Monetary Fund's Reserve Tranche.

The rupee increased 0.1% in the week ending May 26, trading in a range of 82.5575 to 82.8500. On Friday, the rupee closed at 82.3050, marking its best week in five.