Finance
According to figures provided by the central bank on Friday, India’s foreign exchange reserves increased for a fourth consecutive week and reached a nearly five-month high of $665.4 billion as of March 28.
After increasing by a total of $20.1 billion over the previous three weeks, the reserves surged by an additional $6.6 billion during the reporting week. The central bank’s intervention in the foreign exchange market and the growth or decline of foreign assets kept in the reserves are the two main causes of changes in foreign currency assets.
The return of foreign investors to the Indian equity market was a major factor in the rupee’s 0.6% weekly increase in the week to which the reserves data applies. Over the past few months, the rupee has been under pressure due to the flight of foreign capital from Indian markets and a period of dollar strength. However, a recent reversal of both dynamics has helped the rupee recover some of its losses.
The rupee ended the day higher and up 0.3% for the week, closing at 85.2350 to the dollar, adding to a 2% gain over the previous two weeks. India’s Reserve tranche position at the International Monetary Fund is included in its forex reserves.
Source: IE
