Mumbai: India's foreign exchange reserves dropped to $560 billion in the week ending on March 10, the lowest since the beginning of December, showed Reserve Bank of India's statistical supplement published on Friday.

The forex reserves stood at $562.40 billion in the week to March 3, according to the data.

The Reserve Bank of India intervenes in the spot and forwards market to prevent extreme fluctuations in the exchange rate between the Indian rupee and the US dollar.

The central bank has previously explained that variations in reserves may also result from valuation gains or losses.

During the past week, the Indian rupee witnessed a slight depreciation of 0.1% against the US dollar, as the banking crisis in the US unfolded. The currency traded in a range of 81.6150 to 82.2975 before closing at 82.5525 on Friday.