Mumbai, July 31 (IANS) India’s foreign exchange reserves rose by a healthy $6.118 billion to $682.2354 billion for the week ended July 24, extending their upward trend, according to data released by the Reserve Bank of India (RBI) on Friday.
The latest surge follows a forex gain of $1.08 billion to $676.237 billion in the previous reported week (July 17).
The value of gold reserves increased by $1.308 billion to $103.058 billion during the week ended July 24, the RBI said.
For the same period, foreign currency assets, a major component of the reserves, increased by $4.873 billion to $555.929 billion.
Expressed in dollar terms, the foreign currency assets include effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves.
However, the Special Drawing Rights (SDRs) were down by $53 million at $18.617 billion, the central bank said.
The RBI’s weekly statistical supplement showed that the country’s foreign exchange reserves continued to strengthen after recovering from the declines witnessed earlier this year amid heightened global uncertainties.
India’s forex reserves had surged to an all-time high of $728.494 billion during the week ended February 27.
However, escalating tensions in the Middle East subsequently put pressure on the rupee, prompting the RBI to intervene in the foreign exchange market through dollar sales, which led to a moderation in the country’s reserve position over the following weeks.
The RBI has consistently maintained that it remains vigilant about developments in the foreign exchange market and intervenes only to curb excessive volatility and ensure orderly market conditions, without targeting any specific exchange rate.
A healthy level of forex reserves enhances India’s ability to meet external payment obligations, finance imports and cushion the economy against global financial and geopolitical uncertainties.
–IANS
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