India’s forex reserves rise to $658.09 billion, ending consecutive weeks of declin.
NEW DELHI: The Reserve Bank of India (RBI) reported Friday that India’s foreign exchange reserves increased by $1.51 billion to $658.09 billion in the week ending November 29. This marks the first rise in nine weeks, recovering from a five-month low.
The reserves had previously declined by $48.3 billion over eight consecutive weeks. In the prior week, they dropped by $1.31 billion, following a significant decrease of $17.76 billion earlier. The reserves had peaked at $704.88 billion at the end of September.
The latest rise is mainly due to a $2.06 billion increase in foreign currency assets, which now stand at $568.85 billion. Exchange rate fluctuations of non-US currencies such as the euro, pound, and yen influence these assets. However, the growth was partially offset by a $595 million decline in gold reserves, totalling $66.98 billion. Special Drawing Rights (SDRs) increased by $22 million to $18.01 billion, while India’s reserve position with the international monetary fund rose by $22 million to $4.25 billion.
The RBI uses foreign exchange reserves to manage market volatility and stabilize the rupee. Governor Shaktikanta Das stressed the importance of these reserves, saying, “Foreign exchange reserves are deployed judiciously to mitigate undue volatility, maintain market confidence, anchor expectations, and preserve overall financial stability.” He added that the reserve levels remain “quite robust.”
During the reporting week, the rupee weakened slightly against the dollar, closing at 84.69. This marked its fifth consecutive weekly decline, including a record low of 84.76.
