MUMBAI: India’s foreign exchange reserves rose for a third consecutive week and stood at a more-than-four-month high of $658.80 billion as of March 21, data released by the central bank on Friday showed.
They rose by $4.5 billion in the reporting week, after having risen by a total of $15.6 billion in the prior two weeks.
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.
In the week to which the reserves data pertains, the rupee gained 1.2% week-on-week, logging its best week in more than two years, on the back of inflows via foreign banks and amid traders unwinding speculative long-dollar positions.
India’s foreign exchange reserves rise to over three-month high
Equity inflows related to the rebalancing of the FTSE’s All-World Index also may have helped the rupee, traders said.
The rupee closed at 85.47 to the dollar on Friday, gaining 0.3% for the day and 2.3% in March.
Forex reserves include India’s Reserve tranche position at the International Monetary Fund.
Foreign exchange reserves (in million US dollars)-------------------------------------------------- March 21 March 14 2025 2025--------------------------------------------------Foreign currency assets 558,856 557,186Gold 77,275 74,391SDRs 18,240 18,262Reserve Tranche Position 4,429 4,431--------------------------------------------------Total 658,800 654,271--------------------------------------------------