New Delhi: India Foreign exchange reserves In the week ended November 29, it increased by $1.51 billion to $658.09 billion. Reserve Bank of India (RBI) reported on Friday. It was the first increase in nine weeks, recovering from a five-month low.
Reserves had previously declined by a total of $48.3 billion for eight consecutive weeks. In the previous week, they fell by $1.31 billion, after a significant drop of $17.76 billion earlier. Reserves stood at $704.88 billion at the end of September.
The latest increase is mainly due to the addition of $2.06 billion. Foreign currency assetsWhich is now $568.85 billion. These assets are exposed to fluctuations in the exchange rates of non-US currencies such as the euro, pound and yen. However, the growth was partially offset by a $595 million drop in gold reserves, which now total $66.98 billion. Special Drawing Rights (SDRs) increased by $22 million to $18.01 billion, while India’s reserve position International Monetary Fund $22 million increased to $4.25 billion.
RBI uses foreign exchange reserves to manage market volatility and stabilize the rupee. Governor Shakti Kanta Das Emphasizing the importance of these reserves, he said, “Foreign exchange reserves should be properly utilized to reduce unnecessary volatility, maintain market confidence, maintain expectations, and maintain overall financial stability. is done.” Reserve levels are “pretty strong,” he added.
During the reporting week, the rupee weakened slightly against the dollar, closing at 84.69. This is its fifth straight weekly decline and includes a record low of 84.76 during the week.