India's Forex Reserves Reach Record High of 692.3 Billion Dollars

India's Forex Reserves Reach Record High of 692.3 Billion Dollars

India's foreign exchange reserves have increased for the sixth consecutive week, reaching a record high of 692.3 billion dollars as of September 20, according to data from the central bank. The reserves rose by 2.84 billion dollars during the reporting week, following a total increase of 19.3 billion dollars in the previous five weeks.

The changes in foreign currency assets are attributed to the Reserve Bank of India's interventions in the foreign exchange market, as well as fluctuations in the value of foreign assets held in the reserves. The RBI actively intervenes to mitigate excessive volatility in the rupee.

During the reporting period, the rupee experienced its strongest week of 2024, buoyed by a larger-than-expected 50-basis-point rate cut by the U.S. Federal Reserve and increased investments in local stocks and bonds. The rupee reached a two-month high of 83.4850 last week, reflecting a nearly 0.4% gain week-on-week. As of Friday, the domestic currency settled at 83.70, a slight decline of 0.1% week-on-week. The forex reserves also include India’s reserve tranche position in the International Monetary Fund.