According to Reserve Bank of India (RBI) figures released, India’s foreign exchange reserves increased to $596.10 billion as of June 16.
This was a $2.35 billion rise from the prior week. Reserves fell by $1.3 billion in the week ending June 9.
To prevent the rupee from falling too much, the central bank intervenes in the spot and future markets.
The changes in foreign currency assets, stated in dollars, include the impact of other currencies held in the RBI’s reserves appreciating or depreciating.
Foreign exchange reserves include India’s stake in the International Monetary Fund’s Reserve Tranche.
The rupee gained 0.6% in the week ended June 16, its highest week in more than three months. During that week, it traded in a range of 81.8575 to 82.4750.
On Friday, the rupee closed at 82.0350.
RESERVES OF FOREIGN EXCHANGE (in millions of US dollars)
Foreign currency assets 527,651 525,073
Gold 45,049 45,374
SDRs 18,249 18,187 Reserve Tranche Position 5,149 5,115
Total 596,098 593,749
Source:BS