Mumbai— India’s foreign exchange reserves rose by $1.57 billion to $677.84 billion for the week ending April 11, marking the sixth straight week of gains, according to data released by the Reserve Bank of India (RBI) on Friday.
This follows a $10.8 billion surge in the previous week, which brought the reserves to $676.3 billion as of April 4.
The latest increase was driven largely by a rise in foreign currency assets—up $892 million to $574.98 billion. These assets, expressed in U.S. dollar terms, reflect changes in the value of non-dollar currencies like the euro, pound, and yen held in the reserve basket.
The gold component also saw a notable jump, increasing by $638 million to $79.997 billion, as global central banks continue to turn to gold as a safe-haven asset amid ongoing geo-economic uncertainty.
Meanwhile, India’s reserve position with the International Monetary Fund (IMF) rose by $43 million to $4.502 billion, while Special Drawing Rights (SDRs) dipped slightly by $6 million to $18.356 billion.
The sustained rise in reserves reverses the earlier declining trend caused by currency revaluation and RBI interventions aimed at curbing rupee volatility. India’s forex reserves had previously hit a record high of $704.885 billion in September 2024.
A strong reserve position enhances the RBI’s ability to stabilize the rupee by intervening in spot and forward currency markets, particularly during periods of heightened volatility. A larger buffer also signals economic resilience and strengthens investor confidence.
On the external trade front, India’s merchandise trade deficit narrowed to a 3-year low of $14.05 billion in February, down from $22.99 billion in January. The improvement came as exports held steady while imports declined, reflecting a strengthening of India’s external sector despite global uncertainties. (Source: IANS)
