MUMBAI — India’s foreign exchange reserves rose by $6.3 billion to $696.99 billion for the week ended May 8, driven largely by a sharp increase in gold holdings, according to Reserve Bank of India data released Friday.
The increase followed a $7.79 billion decline in the previous reporting week, when reserves fell to $690.69 billion.
India’s reserves had reached a record high of $728.49 billion for the week ended Feb. 27, but later came under pressure as global uncertainty and the Middle East conflict prompted the RBI to intervene in currency markets to help stabilize the rupee.
Foreign currency assets, the largest component of the reserves, rose by $562 million to $552.39 billion during the latest reporting week. The RBI said foreign currency assets, when expressed in dollar terms, reflect the appreciation or depreciation of non-U.S. currencies such as the euro, pound and yen.
Gold reserves posted the largest gain, rising by $5.64 billion to $120.85 billion.
Special Drawing Rights increased by $84 million to $18.87 billion, while India’s reserve position with the International Monetary Fund rose by $12 million to $4.88 billion.
The latest movement in reserves reflects India’s effort to manage external pressures while maintaining currency stability in an uncertain global economic environment. (Source: IANS)
