Snapping the falling streak, India’s forex reserves swelled by $6.56 billion to reach $531.08 billion for the week ended October 28, according to the latest data from the RBI. The foreign exchange (forex) reserves have been on a declining spree for the past several months.
In the previous reporting week, the overall forex reserves had dropped by $3.85 billion to $524.5 billion. The $6.5-billion jump in the week ended October 28 was the highest since September 2021.
India’s forex kitty had reached an all-time high of $645 billion in October 2021. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused by global developments.
The $6.5-billion increase happened in a week that witnessed the Diwali festivities, which had also led to the closure of markets. Foreign currency assets (FCA), a major component of the overall reserves, jumped $5.77 billion to $470.85 billion during the week to October 28, according to the Weekly Statistical Supplement released by the RBI on Friday.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. The value of gold reserves increased $556 million to $37.76 billion.
The special drawing rights (SDRs) were up by $185 million to $17.63 billion. The country’s reserve position with the IMF was also up by $48 million to $4.85 billion in the reporting week, the data showed.
The forex reserves have been falling due to the capital outflow amid recession concerns and as the RBI has spent a significant amount to shore up the rupee. The domestic currency has declined about 9 per cent during the current calendar year.
However, on Friday, the rupee appreciated by 47 paise to close at 82.41 (provisional) against the US dollar as the greenback retreated from its elevated levels. At the interbank foreign exchange market, the local unit opened at 82.85 and finally settled at 82.41 against the American currency, registering a rise of 47 paise over its previous close amid a positive trend in domestic equities.
(With Inputs From PTI)
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