The Reserve Bank of India (RBI) reported on Friday that the country’s foreign exchange reserves shot up by $5.929 billion to $595.067 billion for the week that ended Friday, June 2.
The country’s foreign exchange reserves had their biggest rise in a month, ending a two-week losing streak. The reserves fell during the previous two reporting weeks, falling by $4.34 billion to $589.14 billion.
The nation’s foreign exchange reserves hit an all-time high of $645 billion in October 2021. The central bank has been using its funds to defend the rupee against pressures mostly brought on by global events, which has resulted in a decline in reserves.
According to the Weekly Statistical Supplement provided by the RBI on Friday, the foreign currency assets, a significant part of the reserves, climbed by $5.27 billion to $526.201 billion for the week ended June 2.
The value of non-US currencies like the euro, pound, and yen kept in foreign exchange reserves is included in the foreign currency assets, which are expressed in dollar terms. According to the RBI, gold reserves increased by $655 million to $45.557 billion.
According to the apex bank, the Special Drawing Rights (SDRs) decreased by $6 million to $18.186 billion.
As per information from the central bank, the nation’s reserve position with the IMF increased by $10 million to $5.123 billion during the reporting week.
During the monetary policy announcement on Thursday, RBI Governor Shaktikanta Das noted that the Indian rupee has been ‘stable’ since January 2023 and that the nation’s external sector has remained ‘resilient’. Having fluctuated between 82.2700 and 82.7850 for the week ending June 2, the rupee increased 0.3%. This week, the rupee fell by 0.2%, ending the day at 82.4625.
The nation’s reserves fell by $4.339 billion in the week that ended on May 26. In the week under review, every component of reserves saw a decrease, with foreign currency assets suffering the most.