The country's forex reserves decreased by $727 million to $429.649 billion for the week ended July 26, led by a decline in foreign currency assets, RBI data showed on Friday.

The forex kitty had increased by $1.579 billion to a new lifetime high of $430.376 billion in the previous week ended July 19.

In the reporting week, foreign currency assets, which are a major component of the overall reserves, fell by $1.734 billion to $399.357 billion, the central bank said.

Expressed in dollar terms, foreign currency assets include the effect of appreciation/depreciation of non-US units like the euro, pound and yen held in the reserves. Gold reserves surged by $1.025 billion to $25.330 billion, according to the central bank data.

Special drawing rights with the International Monetary Fund dipped $2.8 million to $1.444 billion. The country's reserve position with the fund also declined by $15.8 million to $3.534 billion, the apex bank said.