NEW DELHI — India’s foreign exchange reserves rose by $3.82 billion to $700.946 billion for the week ended April 10, continuing a recent upward trend, according to data released Friday by the Reserve Bank of India.
The increase follows a sharp gain of $9.06 billion in the previous week, when reserves stood at $697.121 billion.
India’s forex reserves had reached a record high of $728.494 billion in late February before declining in subsequent weeks amid geopolitical tensions in the Middle East. The pressure on the rupee during that period prompted the central bank to intervene in currency markets by selling dollars.
The latest rise was driven largely by an increase in foreign currency assets, the biggest component of the reserves. These assets grew by $3.127 billion to $555.983 billion during the reporting week.
Foreign currency assets are influenced by movements in major global currencies such as the euro, pound, and yen, which can impact overall reserve valuations.
Gold reserves also increased, rising by $601 million to $121.343 billion, reflecting higher valuations during the week.
In addition, Special Drawing Rights with the International Monetary Fund rose by $56 million to $18.763 billion, while India’s reserve position with the IMF increased by $41 million to $4.857 billion.
The steady rise in reserves is viewed as a positive signal for the economy, providing a buffer against external shocks and helping maintain stability in the currency market.
A strong reserve position enables the Reserve Bank of India to manage exchange rate volatility and support the rupee when needed, while also indicating sustained inflows of foreign currency into the economy. (Source: IANS)
