Mumbai . According to the latest data released by the Reserve Bank of India, India’s foreign exchange reserves rose $ 10.8 billion to $ 676.3 billion during the week ended April 4.
This is the fifth consecutive week to record an increase in foreign exchange reserves.
According to the RBI weekly statistical report, a component of India’s reserves ‘foreign exchange assets’ increased by $ 9 billion to $ 574.08 billion, while the ‘gold reserves’ increased by $ 1.5 billion to $ 79.36 billion.
In addition, the Special Drawing Rights (SDR) rose $ 186 million to $ 18.36 billion.
India’s foreign exchange reserves rose $ 6.6 billion in the week ended on March 28, 2025 to a five -month high of $ 665.4 billion.
The trend of decline of last week has now been reversed in the last five weeks to help RBI re -evaluation and foreign exchange market intervention to help reduce the instability in the rupee.
Earlier, the country’s foreign exchange reserves had increased to an all -time high of $ 704.885 billion in September 2024.
The strengthening of the country’s foreign exchange reserves also helps strengthen the rupee against the US dollar, which is considered a good sign for the economy. With the recent increase in foreign exchange reserves, the rupee has also strengthened.
The increase in foreign exchange reserves reflects the strong foundations of the economy and gives more scope to stabilize the rupee when the RBI is unstable.
Strong foreign exchange reserves enable the RBI to interfere with the spot and forward currency market by issuing more dollars to prevent the rupee from falling.
In contrast, the decreasing 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 trade trade deficit has come down to a 3 -year -low at $ 14.05 billion in February, which was $ 22.99 billion in January.
Exports remained stable during this month, while imports declined. This reflects the strength of the outer region of the economy despite geopolitical tensions that promote economic uncertainty in the global market.
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