India's foreign exchange reserves rose by $4.53 billion in the week ending March 21, with the Reserve Bank of India buying dollars at regular interval
Traders in the forex exchange market said that large state-owned banks were buyers of dollars last week at the behest of the RBI, as the rupee appreciated from its lows.
The forex reserves rose to an all-time high of $705 billion at the end of September last year. The central bank had sold dollars to support the rupee while it was under severe pressure.
Meanwhile, the Reserve Bank said that valuation gains amounted to $3.1 billion during April-December 2024, down from $11.1 billion in the same period last year.
On a balance of payments basis (i.e. excluding valuation effects), foreign exchange reserves decreased by $13.8 billion during the period as against an accretion of $32.9 billion during April-December 2023.
m.economictimes.com