After rising for two weeks, foreign exchange reserves slid by $59 million to $295 billion, the Reserve Bank said on Friday.
The total foreign exchange reserves had risen by $1.61 billion to $296.05 billion in the previous reporting week.
Foreign currency assets, a major component of the forex reserves, fell by $1.50 billion to $259.56 billion for the week ended March 2, the Reserve Bank said.
However, the heavy fall in the foreign currency assets was offset by a surge in the value of gold reserves , which went up by $1.4 billion to $28.13 billion, after remaining unchanged for weeks.
Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of the non-US currencies, such as the euro, pound and yen, held in the reserves, the apex bank said.
For the week under review, special drawing rights (SDRs) decreased $23.8 million to $4.457 billion, while the country's reserve position in the IMF swelled by $70.3 million to $2.807 billion, the apex bank data showed.