MUMBAI: India’s foreign exchange reserves rose to a two-month high of $640.48 billion as of February 21, data released by the central bank on Friday showed.
The reserves rose by $4.76 billion in the reported week. They had fallen by $2.54 billion in the prior week, the most in a month.
Changes in foreign currency assets are caused by the central bank’s intervention in the forex market as well as the appreciation or depreciation of foreign assets held in the reserves.
The rupee, like its Asian peers, has been volatile amid uncertainty surrounding U.S. trade tariffs but periodic intervention by the central bank has helped cap large-scale losses in the domestic unit.
India’s forex reserves snap 3-week gaining streak
In the week to which the reserves data pertains, the rupee advanced 0.1% week-on-week, broadly benefiting from a weaker dollar.
The domestic unit ended at 87.4950 per dollar on Friday. It fell 1% in February, and had slipped to an all-time low of 87.95 during the month.
Foreign exchange reserves include India’s Reserve Tranche position in the International Monetary Fund.
Foreign exchange reserves (in million US dollars)
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Feb 21 Feb 14
2025 2025
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Foreign currency assets 543,843 539,591
Gold 74,576 74,150
SDRs 17,971 17,897
Reserve Tranche Position 4,090 4,083
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Total 640,479 635,721
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American Dollar Exchange Rate