India’s foreign exchange reserves increased for the third consecutive week and reached $599.53 billion for the week ended May 12, according to the Reserve Bank of India’s (RBI) statistical supplement released on Friday. This was their highest level since the beginning of June.
This is up from last week’s $3.55 billion. Over the past two weeks, reserves have increased by a total of $11.7 billion, Reuters reported.
To protect the rupee from excessive volatility, the central bank intervenes in the spot and futures markets. change in foreign currency Store values are also affected by profit or loss.
The positive outlook on the rupee is being tested by the RBI’s ongoing intervention to shore up reserves, which are held by several international banks, according to Reuters earlier this week, citing treasury officials and analysts.
General strengthening of the dollar index resulted in the rupee depreciating by 0.4% for the week covered by the forex reserves data. The local currency was trading between 81.6900 and 82.2250.
This week the rupee saw its worst fall in two months as it declined further by 0.6%. On Friday, the local currency was valued at 82.66 against the dollar.
India’s foreign exchange reserves increased by $7.196 billion to $595.976 billion in the week ended May 5, 2023, taking it a step closer to the $600 billion mark. There will be an increase in the stock for the second consecutive week. Except SDR, all other indicators advanced during the week under review, with foreign currency assets (FCAs) being the main driver.
India’s forex reserves rise by $7.2 billion to 11-month high close to $600 billion
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