India’s foreign-exchange reserves have reached an all-time high of $729.33 billion, driven by continuous dollar inflows and central bank measures to stabilise the rupee, signalling strong external sector resilience.
India’s foreign-exchange reserves have climbed to a record $729.33 billion, according to Reserve Bank of India data released on Friday, after rising by about $12.4 billion in the week ended 21 August. Reuters reported that the increase was driven by persistent dollar inflows linked to the central bank’s recent steps to draw in capital, while the previous peak of $728.5 billion was set in February. (investing.com)
The latest jump was helped by a $9.5 billion rise in foreign currency assets and a $2.8 billion increase in gold holdings, Reuters said. The Reserve Bank’s special measures, including a concessional swap facility and hedging support for overseas borrowing and foreign currency deposits, had brought in nearly $72.8 billion by 21 August, helping to strengthen the country’s balance of payments and cushion the rupee. (marketscreener.com)
Analysts have said the inflows reflect both policy support and steady demand from non-resident Indians for rupee and foreign currency deposits. Reuters also noted that central bank intervention in the foreign-exchange market to support the rupee may have offset part of the inflow effect, underscoring how the RBI is balancing reserve accumulation with exchange-rate stability. (marketscreener.com)
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