India's forex rises for sixth week, reaching $677.84 billion

Mumbai

India's foreign exchange reserves rose by $1.57 billion, reaching $677.84 billion for the week ending April 11, as per the Reserve Bank of India (RBI) data released on Friday. This marks the sixth consecutive week of growth in the country's forex reserves, following a $10.8 billion increase the previous week, bringing the total to $676.3 billion by April 4.

The foreign currency assets, a key component of the reserves, rose by $892 million to $574.98 billion. These assets reflect the impact of currency value changes, such as the euro, pound, and yen, in the reserves. Meanwhile, gold holdings grew by $638 million to $79.997 billion, as central banks globally have been purchasing gold amid economic uncertainty.

The Special Drawing Rights (SDRs) fell by $6 million to $18.356 billion, and India’s reserve position with the IMF increased by $43 million to $4.502 billion. The steady rise in forex reserves over the past six weeks follows a period of revaluation and RBI interventions to stabilize the rupee.

A strong forex reserve bolsters the rupee's value against the dollar, benefiting the economy. With increased reserves, the RBI has more flexibility to manage currency fluctuations. Additionally, India’s merchandise trade deficit has narrowed significantly to $14.05 billion in February, reflecting a more stable external sector despite global economic uncertainties.