India’s forex reserves climb for third straight week, jump $7.6 billion

India’s foreign exchange reserves rose sharply by $7.65 billion to $638.26 billion for the week ended February 7, according to the Reserve Bank of India (RBI).This marks the third consecutive weekly increase, following a $1.05 billion rise in the previous week.The surge comes after a recent phase of decline due to revaluation and RBI’s forex market interventions aimed at reducing rupee volatility. Despite this rebound, reserves remain below the all-time high of $704.89 billion recorded in late September 2024.Foreign currency assets, which constitute the largest portion of the reserves, climbed by $6.42 billion to $544.11 billion.These assets reflect movements in major global currencies like the euro, pound, and yen against the US dollar.Gold reserves also saw a significant uptick, increasing by $1.32 billion to $72.21 billion during the week.However, Special Drawing Rights (SDRs) fell by $11 million to $17.88 billion, while India’s reserve position with the International Monetary Fund (IMF) declined by $71 million to $4.07 billion.The steady rise in reserves signals improved external sector strength, potentially giving the RBI greater flexibility in managing currency fluctuations and ensuring financial stability.

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