MUMBAI — India’s foreign exchange reserves rose by $2.3 billion to $703.3 billion in the week ended April 17, according to data released Friday by the Reserve Bank of India, signaling a modest recovery after weeks of pressure tied to global volatility.
The increase follows a period of decline driven by external factors, including heightened geopolitical tensions in West Asia and central bank intervention to stabilize the rupee.
India’s reserves had reached a record high of $728.494 billion in late February before reversing course as the regional conflict intensified and triggered capital outflows.
Gold reserves continued to climb, standing at $122.13 billion after a $79 million increase. Special Drawing Rights rose to $18.84 billion, while India’s reserve position with the International Monetary Fund edged up by $14 million to $48.70 billion.
The rupee has faced pressure amid global uncertainty, prompting the Reserve Bank of India to sell dollars in the foreign exchange market to curb volatility. Those interventions contributed to a steady drawdown in reserves in recent weeks.
The latest increase suggests some easing of those pressures, though overall reserves remain below their late-February peak.
India’s foreign exchange reserves have been recovering gradually, rising by $3.825 billion in the previous week ended April 10 and by $9.063 billion in the week ended April 3.
Forex reserves are a key buffer for the economy, enabling the central bank to manage currency fluctuations, support the rupee during periods of volatility, and ensure stability in external trade.
The recent movements highlight India’s ongoing effort to balance external shocks while maintaining currency stability in an uncertain global economic environment. (Source: IANS)
