India’s foreign exchange reserves experienced a significant boost, climbing by $14.136 billion to reach $707.002 billion in a notable weekly increase, supported by currency inflows and gold holdings.
India’s foreign exchange reserves rose sharply in the week ended August 7, climbing by $14.136 billion to $707.002 billion, according to Reserve Bank of India data released on Friday. The increase was one of the biggest weekly gains in recent months and lifted the country’s war chest well above the previous week’s $692.866 billion.
The latest build-up came after several weeks of volatility earlier this year, when reserves had eased from an all-time peak of $728.494 billion recorded in the week ended February 27. The RBI has been active in the currency market this year as the rupee came under pressure, while policy steps announced in July were aimed at attracting more foreign exchange inflows.
Foreign currency assets, which form the largest part of the reserves, rose by $9.946 billion to $574.625 billion in the latest reporting week. The RBI’s figures show that this category is affected not only by dollar moves, but also by the appreciation or depreciation of holdings in currencies such as the euro, pound and yen.
Gold holdings also climbed by $3.995 billion to $108.738 billion, while special drawing rights increased by $79 million to $18.745 billion. India’s reserve position with the International Monetary Fund rose by $116 million to $4.894 billion. Earlier weekly data show the reserves had already been on an upward path through July and into August, with gains reported on July 10, July 17 and in the week ended July 31.
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