India’s foreign exchange reserves rose by $5.17 billion to reach $696.66 billion for the week ended June 6, according to data released by the Reserve Bank of India (RBI) on Friday. This marks a rebound after a $1.24 billion decline in the previous week.The increase was primarily driven by a $3.47 billion rise in foreign currency assets, which stood at $587.69 billion. Gold reserves also contributed, increasing by $1.58 billion to $85.88 billion during the week.
Special Drawing Rights (SDRs) rose by $102 million to $18.67 billion, while India’s reserve position with the International Monetary Fund (IMF) inched up by $14 million to $4.4 billion.
Forex reserves had hit a record high of $704.88 billion in September 2024. The foreign currency asset component reflects valuation changes in currencies such as the euro, yen, and pound against the dollar.Also Read: Rupee breaches 86-mark against US dollar as Israel-Iran tensions flare: What traders expect nextThe latest uptick offers some cushion for the RBI amid global uncertainties and helps strengthen the country’s external stability.
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