Forex reserves record biggest drop in 14 months

India’s foreign exchange reserves recorded their biggest weekly drop in 14 months as the central bank sold dollars to support a weakening rupee, analysts said.The holdings in the week ended Jan 2 fell by $9.9 billion to $552 billion. During the week, the rupee fell 0.4% against the dollar due to foreign fund outflows and delays in a trade deal between India and the US. “The fall in reserves is mostly on account of dollar selling by the Reserve Bank of India, and to a smaller extent, the revaluation of reserves as US yields rose and the dollar strengthened,” said Gaura Sen Gupta of IDFC First Bank.BLOOMBERG