Forex Update: India’s Foreign Exchange Reserves Jump $6.4 Billion To $642.5 Billion

India’s foreign exchange (forex) reserves increased $6.396 billion to $642.492 billion for the week ended March 15, according to the latest RBI data. In the previous reporting week, the overall reserves had risen by $10.47 billion to $636.095 billion.

In October 2021, the country’s forex kitty had reached an all-time high of $645 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 15, the foreign currency assets, a major component of the reserves, increased by $6.034 billion to $568.386 billion, the data 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 by $425 million to $51.14 billion during the week, the RBI said. The special drawing rights (SDRs) were up by $65 million to $18.276 billion, the apex bank said.

India’s reserve position with the IMF was down by $129 million to $4.689 billion in the reporting week, the apex bank data showed.

The rupee currently stands at its all-time low of 83.61 against the US dollar, amid a surging greenback against major crosses in the overseas markets.

Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, said, “The low volumes of 1.50 per cent in dollar-rupee has kept dollar bid and one of the reasons for the breakout are these low volumes. Inflows are there but are getting absorbed by the outflows in the last three days. A range of 83.25/83.75 is expected in coming week.”