Mumbai, 4 April (IANS). According to the latest data released by the Reserve Bank of India on Friday, India’s foreign exchange reserves rose $ 6.6 billion to a five -month high of $ 665.4 billion in the week ended March 28, 2025.
According to RBI, the country’s gold reserves rose $ 519 million to $ 77.8 billion, which is part of foreign exchange reserves.
This is the fourth consecutive week of increase in foreign exchange reserves after growing $ 4.5 billion to $ 658.8 billion in the week ended March 21.
The trend of decline of last week has now been reversed in the last four weeks to help the RBI re -evaluation and the intervention in the foreign exchange market to help reduce the instability in the rupee.
Earlier, the country’s foreign exchange reserves increased to an all -time high of $ 704.885 billion in September 2024.
The country’s foreign exchange reserves strengthens the rupee against the US dollar, which is good for the economy. The rupee has also strengthened with the recent increase in foreign exchange reserves.
The increase in foreign exchange reserves reflects the strong foundations of the economy and gives more scope to the RBI to stabilize it when the rupee fluctuates.
Strong foreign exchange reserves enable the RBI to interfere with the spot and the Forty currency market by releasing more dollars to prevent the rupee from falling. At the same time, the falling foreign exchange reserves give RBI less space to interfere in the market to support the rupee.
Meanwhile, according to the latest data released by the Ministry of Commerce and Industry, India’s goods trade deficit declined to $ 14.05 billion in February, a minimum level of three years.
It was $ 22.99 billion in January. During this time exports remained stable, while imports declined.
This reflects the strength of the economy in the external sector despite geopolitical tensions that create economic uncertainty in the global market.
The country’s goods exports increased by 1.3 percent to $ 36.91 billion in February, compared to $ 36.43 billion in January. At the same time, imports declined by 16.3 percent to $ 50.96 billion, compared to $ 59.42 billion last month.
-IANS
SKT/ABM
