India’s forex reserves rise to record high of US$723.8 billion
They are up by about US$14 billion, from the week ending in Jan 23
Add BT as a preferred source
[MUMBAI] India’s foreign exchange reserves scaled new highs, hitting US$723.8 billion in the week until Jan 30, data released by the Reserve Bank of India (RBI) on Friday (Feb 6) showed.
The reserves are up by about US$14 billion from the prior week, building on an already record-high level.
India’s foreign exchange reserves have risen by about US$36 billion in just three weeks until Jan 30, climbing from nearly US$688 billion to a high of US$724 billion.
The jump in that period has coincided with a US$10 billion US dollar/rupee buy-sell swap by the RBI, with a rally in gold prices and valuation gains on foreign currency assets adding to the increase.
Foreign exchange reserves have hit fresh highs in back-to-back weeks – despite a prolonged phase in which the rupee has been under pressure from weak capital inflows and persistent US dollar demand from importers and hedgers.
That pushed the currency close to an all-time low of 92 rupees (S$1.3) per US dollar, prompting the RBI to sell US dollars in the market.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
The rupee has recovered this week, boosted by the announcement of a US-India trade deal that alleviated pressure on the currency.
Changes in foreign currency assets, expressed in US dollar terms, include the effect of appreciation or depreciation of other currencies held in the central bank’s reserves.
Foreign exchange reserves include India’s Reserve Tranche position in the International Monetary Fund. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
