Mumbai: India’s foreign exchange reserves increased by $964 million to $675.16 billion for the week ended July 10, according to data released by the Reserve Bank of India (RBI) on Friday.
The latest increase follows a sharp rise of $7.26 billion in the previous reporting week, when the country’s forex reserves had climbed to $674.19 billion after reversing the decline recorded earlier.
According to the RBI, foreign currency assets (FCAs), the largest component of the country’s forex reserves, rose by $930 million to $546.51 billion during the week under review.
FCAs reflect the impact of changes in the value of major global currencies such as the euro, pound sterling and Japanese yen against the US dollar.
India’s gold reserves also edged higher, increasing by $24 million to $105.23 billion during the reporting week.
The country’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by $3 million to $18.626 billion, while its reserve tranche position with the IMF increased by $7 million to $4.793 billion.
India’s foreign exchange reserves had touched an all-time high of $728.494 billion during the week ended February 27 this year.
However, escalating geopolitical 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 contributed to a decline in reserves in the following weeks.
Amid global uncertainties, Prime Minister Narendra Modi has, since May 11, urged citizens to help conserve foreign exchange by reducing non-essential overseas travel, cutting fuel consumption and postponing gold purchases for a year.
The RBI has maintained that it remains watchful of developments in the foreign exchange market and will continue to intervene whenever required to ensure orderly market conditions, while reiterating that it does not target any specific exchange rate.
(IANS)
