India’s foreign exchange reserves rise for second week

MUMBAI: India’s foreign exchange reserves rose for a second consecutive week and stood at an over one-month high of $644.15 billion as of May 10, data from the central bank showed on Friday.

The reserves rose by $2.56 billion in the reporting week, after rising by $3.7 billion in the previous week.

The Reserve Bank of India (RBI) intervenes in the foreign exchange market to curb excess volatility in the rupee.

Changes in foreign currency assets are caused by the RBI’s intervention as well as the appreciation or depreciation of foreign assets held in the reserves.

Foreign exchange reserves also include India’s reserve tranche position in the International Monetary Fund.

[India’s foreign exchange reserves come off seven-week lows][1]

For the week to which the foreign exchange data pertains, the rupee traded in a narrow range of 83.4150 to 83.5175 against the dollar, and had logged marginal weekly losses.

The currency ended at 83.3350 against the U.S. dollar on Friday, up 0.2% for the week.

FOREIGN EXCHANGE RESERVES (in million U.S. dollars)
----------------------------------------------------
                              May 10       May 03
                               2024         2024
----------------------------------------------------
Foreign currency assets      565,648      564,161
Gold                          55,952       54,880
SDRs                          18,056       18,051
Reserve Tranche Position       4,495        4,499
----------------------------------------------------
Total                        644,151      641,590
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  [1]: https://www.brecorder.com/news/40302807