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Markets

India’s forex reserves rise to one-month high of $622.47bn

Published February 9, 2024 Updated February 9, 2024 04:52pm
Photo: Reuters
Photo: Reuters
By

MUMBAI: India’s foreign exchange reserves rose for a second straight week to a one-month high of $622.47 billion as of Feb. 2, data from the central bank showed on Friday.

The reserves rose by $5.74 billion in the reporting week, the biggest rise in nearly two months. Reserves had risen by $590 million in the prior week. The Reserve Bank of India (RBI) intervenes in the foreign exchange market to curb excess volatility in the rupee.

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.

India’s central bank leaves rates unchanged, sees GDP growth at 7% in 2024-25

In the week that the foreign exchange data pertains, the rupee rose 0.2% against the dollar and traded in a range of 82.8225 and 83.1525.

The domestic currency settled at 83.0350 on Friday, down 0.1% for this week.

Comments

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Az_Iz Feb 09, 2024 07:24pm
Most of the reserves are built due to inflows into the stocks, thru foreign financial institutions, who hold just as much. If all that money is taken out, then net reserves will drop to zero.
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Ash Chak Feb 09, 2024 11:12pm
@Az_Iz, Not true. The reserves are held mostly in gold and US treasury bills. I think you are confusing the stock market with the foreign exchange reserves.
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