Mumbai, Feb 27 (PTI) India's forex reserves dropped by USD 2.119 billion to USD 723.608 billion during the week ended February 20, the RBI said on Friday.

In the previous reporting week, the overall reserves had jumped by USD 8.663 billion to a new all-time high of USD 725.727 billion.

For the week ended February 20, foreign currency assets, a major component of the reserves, decreased by USD 1.039 billion to USD 572.564 billion, the data released by the central bank showed.

Expressed in dollar terms, the foreign currency assets include the effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves.

Value of the gold reserves dropped by USD 977 million to USD 127.489 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) were down by USD 84 million to USD 18.84 billion, the apex bank said.

India's reserve position with the IMF was also down by USD 18 million to USD 4.716 billion in the reporting week, according to the apex bank's data. PTI AA MR

Foreign exchange reserves dip, driven by declines in currency assets, gold holdings, SDRs and IMF reserve position. India's foreign exchange reserves fell by USD 2.119 billion for the week ended February 20, lowering total reserves to USD 723.608 billion. The decline was driven by decreases in foreign currency assets (down USD 1.039 billion to USD 572.564 billion), gold reserves (down USD 977 million to USD 127.489 billion), Special Drawing Rights (down USD 84 million to USD 18.84 billion), and the reserve position with the IMF (down USD 18 million to USD 4.716 billion).