Forex watch: Reserves fall $4.38 bn to $690.72 bn, FCA and gold drag holdings – The Times of India

India’s foreign exchange reserves fell by $4.386 billion to $690.72 billion in the week ended August 22, the Reserve Bank of India (RBI) said on Friday.The overall reserves had risen $1.488 billion to $695.106 billion in the preceding reporting week, PTI reported.According to RBI data, foreign currency assets (FCA)—the biggest component of reserves—declined $3.652 billion to $582.251 billion. FCA, expressed in dollar terms, also captures the impact of movements in non-US currencies such as the euro, pound, and yen.Gold reserves dropped $665 million to $85.003 billion during the week. The special drawing rights (SDRs) fell $46 million to $18.736 billion, while India’s reserve position with the IMF was down $23 million at $4.731 billion, the data showed.Meanwhile, India’s economy grew 7.8% in April-June, the fastest in five quarters, driven by a sharp rebound in agriculture and steady manufacturing, government data showed. The farm sector expanded 3.7% compared with 1.5% a year earlier, while manufacturing edged up to 7.7% from 7.6%. With China posting 5.2% growth in the same period, India held its position as the world’s fastest-growing major economy. T