MUMBAI: India’s foreign exchange reserves extended their winning run for a fourth straight week to hit a record high of $689.24 billion as of Sept. 6, data from the central bank showed on Friday.
The reserves rose by $5.3 billion in the reporting week, after having risen by a total of $13.9 billion in the prior three weeks.
The RBI intervenes on both sides of the foreign exchange market to prevent undue volatility in the rupee.
These interventions, via state-run banks in the spot market, helped avert a steeper decline in the local currency, which has hovered close to 84 per U.S. dollar in recent sessions, traders said.
In the week ending Sept. 6, the rupee fell 0.1% against the dollar and traded in a thin band.
India’s forex reserves hit record high
The rupee settled at 83.8875 on Friday, having strengthened nearly 0.1% week-on-week in its best weekly performance since the week ended June 25.
Changes in foreign currency assets are caused by the RBI’s intervention as well as the appreciation or depreciation of foreign assets held in the reserves.
Foreign exchange reserves also include India’s reserve tranche position in the International Monetary Fund.
Foreign exchange reserves (in million US dollars)
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Sept 06 Aug 30
2024 2024
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Foreign currency assets 604,144 599,037
Gold 61,988 61,859
SDRs 18,472 18,468
Reserve Tranche Position 4,631 4,622
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Total 689,235 683,987
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American Dollar Exchange Rate