MUMBAI: India’s foreign exchange reserves fell by $1.7 billion last week to stand at $652 billion as of June 28, when the country’s debt was included in JPMorgan’s emerging market index, data from the central bank showed on Friday.

The reserves had risen by $810 million in the prior week.

The Reserve Bank of India (RBI) intervenes in the foreign exchange market to curb excess volatility in the rupee.

Changes in foreign currency assets are caused by the RBI’s intervention as well as the appreciation or depreciation of foreign assets held in the reserves.

Foreign exchange reserves also include India’s reserve tranche position in the International Monetary Fund.

India’s forex reserves rise to $653.71 billion as of June

In the week to which the latest foreign exchange data pertains, the rupee touched a peak of 83.3575 amid the much-awaited inclusion to the JPMorgan index.

Foreign exchange market indicators had pointed to inflows, likely due to passive funds buying bonds since the inclusion, but multiple market participants said the quantum of inflows was sharply lower than anticipated.

The currency settled at 83.4850 on Friday, down 0.1% for the week.

FOREIGN EXCHANGE RESERVES (in million U.S. dollars)----------------------------------------------------                             June 28      June 21                               2024         2024----------------------------------------------------Foreign currency assets      572,881      574,134Gold                          56,528       56,956SDRs                          18,014       18,049Reserve Tranche Position       4,573        4,572----------------------------------------------------Total                        651,997      653,711----------------------------------------------------