 "In the week ending Sept. 6, the rupee fell 0.1% against the dollar and traded in a thin band. File Image- FP")
India’s foreign exchange reserves reached a record high of $689.24 billion as of September 6, extending their increase for the fourth consecutive week, according to data from the central bank released on Friday.
This upward trend has been significant throughout 2024, with reserves growing by over $60 billion this year alone. This substantial reserve buffer protects domestic economic activity against global financial shocks.
The reserves rose by $5.3 billion in the reporting week, after having risen by a total of $13.9 billion in the prior three weeks.
The RBI intervenes on both sides of the foreign exchange market to prevent undue volatility in the rupee.
These interventions, via state-run banks in the spot market, helped avert a steeper decline in the local currency, which has hovered close to 84 per U.S. dollar in recent sessions, traders said.
In the week ending Sept. 6, the rupee fell 0.1% against the dollar and traded in a thin band.
The rupee settled at 83.8875 on Friday, having strengthened nearly 0.1% week-on-week in its best weekly performance since the week ended June 25.
Changes in foreign currency assets are caused by the RBI’s intervention as well as the appreciation or depreciation of foreign assets held in the reserves.
With inputs from agencies.