Mumbai– India’s foreign exchange reserves increased by $6.118 billion to $682.235 billion in the week ended July 24, extending their recent upward trend, according to data released Friday by the Reserve Bank of India.
The increase followed a gain of about $1.08 billion in the previous reported week, when reserves reached $676.237 billion.
Foreign currency assets, the largest component of the reserves, rose by $4.873 billion to $555.929 billion.
The dollar value of foreign currency assets reflects changes in the value of non-U.S. currencies held in the reserves, including the euro, British pound and Japanese yen.
Gold reserves increased by $1.308 billion to $103.058 billion during the week, while Special Drawing Rights declined by $53 million to $18.617 billion.
India’s foreign exchange reserves have strengthened after declining earlier in the year amid global economic and geopolitical uncertainty.
The reserves had reached a record high of $728.494 billion in the week ended Feb. 27. They later declined as tensions in the Middle East put pressure on the rupee and prompted the RBI to sell dollars in the foreign exchange market.
The central bank has said it intervenes in the currency market to limit excessive volatility and maintain orderly trading conditions rather than defend a specific exchange rate.
A strong reserve position helps India meet its external payment obligations, pay for imports and absorb shocks stemming from global financial or geopolitical disruptions. (Source: IANS)
