Forex Update: India’s Foreign Exchange Reserves Hit Fresh All-Time High of $645.58 Billion

India’s foreign exchange reserves increased $2.951 billion to $645.583 billion for the week ended March 29, according to the latest RBI report. This is the sixth consecutive week of a jump in overall reserves. The kitty had increased $140 million to $642.631 billion in the previous reporting week.

Earlier, the country’s forex kitty had in September 2021 reached an all-time high of $642.453 billion. The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year.

For the week ended March 29, the foreign currency assets, a major component of the reserves, increased $2.354 billion to $570.618 billion, data released on Friday showed.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves.

Gold reserves increased $673 million to $52.16 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were down $73 million to $18.145 billion, the apex bank said.

India’s reserve position with the IMF was also down $2 million to $4.66 billion in the reporting week, the apex bank data showed.

The rupee currently stands at 83.31 against the US dollar.

Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP, said, “The domestic currency Rupee is expected to be in a broad range of 83-83.50 as RBI supports the upside and down side of the currency pair. Exporters to sell for near term at 83.40 and above and importers to buy dips.”