India’s forex reserves rise for third straight week, hits 6-month high

The Reserve Bank of India’s (RBI) statistical supplement showed that India’s foreign exchange reserves increased to a six-month high of $576.76 billion in the week ending Jan. 27.

This is the third week in a row that the country’s reserves have increased. The reserves stood at $573.73 billion in the week ending January 20.

According to forex market participants, the RBI intervened to buy dollars as the rupee stabilized.

This, along with changes in valuation, increases the central bank’s forex reserves.

The rupee fell 0.5% against the dollar in the week ending January 27 as a result of suspected RBI intervention and importer hedging, trading in a range of 80.88-81.7650.

The rupee fell again in the week ending February 3 due to concerns about equity outflows.

Source:BS