Forex Reserves Increase For Seventh Straight Week To $686.14 Billion
Reserves have steadily recovered after a steep fall from their peak of $700 billion at the end of September.
India's foreign exchange reserves rose to the highest level since early November to $686.14 billion for the period ended April 18, according to data from the Reserve Bank of India on Friday.
The country's forex kitty swelled by nearly $8 billion over the previous reporting week, the seventh consecutive advance. The reserves added $1.57 billion in the week ended April 11.
India ranks as the fourth-largest holder of foreign exchange reserves, sufficient to cover 11 months of imports, Finance Minister Nirmala Sitharaman informed the Rajya Sabha last month. The country's forex holding is the fourth largest after China, Japan and Switzerland.
Reserves have steadily recovered after a steep fall from their peak of $700 billion at the end of September.
Besides, foreign investors have pulled out $10.68 billion from the country's debt and equity markets so far this year, according to data from the National Securities Depository Ltd.
The Indian rupee closed weaker against the US dollar in the final trading session of the week as it closed 18 paise lower at 85.45 against the US dollar, compared to its previous close of 85.27 per dollar on Thursday.
For the week ended April 18, foreign currency assets — a major component of the reserves — rose to $578.49 billion, according to the RBI data.
In dollar terms, foreign currency assets include the effect of the appreciation or depreciation of non-US units like the euro, pound, and yen held in foreign exchange reserves.
Gold reserves increased to $84.57 billion during the week ended April 18. Earlier during the week ending April 11, Gold reserves surged by $638 million to $79.997 billion during the week, the RBI said.
