Forex Update: India’s Forex Reserves Hit All-Time High of $642.63 Billion

India’s forex reserves rose $140 million during the week ended March 22 to touch its all-time high of $642.631 billion, according to the latest RBI data. This is the fifth consecutive week of a jump in the overall reserves. The kitty had jumped $6.396 billion to $642.492 billion in the previous reporting week.

The previous peak level was recorded in September 2021 when the country’s foreign exchange reserves reached $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 22, the foreign currency assets, a major component of the reserves, decreased by $123 million to $568.264 billion, the 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 rose $347 million to $51.487 billion during the week. The special drawing rights (SDRs) were down by $57 million to $18.219 billion, the RBI said.

India’s reserve position with the IMF was also down by $27 million to $4.662 billion in the reporting week, the RBI data showed.

The rupee ended the week ended March 29 at 83.40 against the US dollar.

Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP, said, “The rupee is expected to remain range bound to weak with market watching RBI support at 83.40. The range for next week is expected to be between 83.25-83.50. Exporters are expected to sell near term at these levels while need importers to buy dips to hedge their respective positions.”