Mumbai: Dec 26; According to the Reserve Bank of India's (RBI) weekly statistical supplement, the Forex reserves stood at $351.10 billion for the week under review.
Market observers cited the central bank's attempts to arrest the fall in the rupee's value, as the main reason for the depletion in Forex reserves.
"The massive depletion in the foreign reserves can be attributed to the US dollar selling by the RBI to stabilise the rupee value," Anindya Banerjee, associate vice president for currency derivatives with Kotak Securities, told IANS.
"The rupee value had been dented during that week, on account of the US Fed's FOMC (Federal Open Market Committee) meet which decided to raise key interest rates."
For the previous week ended December 11, the country's foreign reserves had risen by $407.9 million at $352.50 billion.
The rupee value was dented during the period preceding to the FOMC meet, as foreign funds went on a selling frenzy in the domestic equity and debt markets.
On a weekly basis, RBI's attempts paid-off as the rupee strengthened by 49 paise at 66.40 (December 18) to a US dollar from its previous close of 66.89 (66.8850) to a greenback (December 11).