Forex reserves decline

Context:

India’s foreign exchange reserves dropped by $3.235 billion to $654.857 billion, a five-month low, for the week ended December 6, data released by the Reserve Bank of India (RBI) revealed.

Highlights:

• The reserve bank of India data shows that the foreign exchange reserves have fallen by five months to $654.857 billion.
• Rupee reaches a new low of ₹ 84.88 per dollar on Thursday, but closes at 84.87.
• In the week gone by, reserves increased by $1.51 billion to $658.091 billion.

What is Foreign Exchange Rese