India’s forex reserves rise by $2.31 billion after 4 straight weekly fall

Mumbai: India’s foreign exchange (forex) reserves rose by $2.315 billion to $573.875 billion for the week ended July 29 on the back of robust capital inflows in the equities markets and strengthening of rupee from the record low, the Reserve Bank of India (RBI) data showed.

The country’s forex reserves have risen for the first time in the last five weeks under review. The forex reserves had declined by around $17 billion in the previous four weeks. For the week ended July 22, the forex reserves had dropped by $1.152 billion.

After four straight weeks of decline, the country’s forex reserves have registered significant gains.
There was a sharp jump in the foreign currency assets and gold reserves.
According to the Reserve Bank of India’s weekly statistical supplement, India’s foreign currency assets, which are the biggest component of the forex reserves, rose by $1.121 billion to $511.257 billion during the week ended July 29.

The foreign currency assets had declined by $1.426 billion in the previous week.

Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-dollar currencies like Euro, UK’s Pound Sterling and Japanese Yen held in the foreign exchange reserves.

There was a sharp increase in gold reserves. The value of gold reserves rose by $1.140 billion to $39.642 billion during the week ended July 29.

The value of India’s Special Drawing Rights (SDRs) with the International Monetary Fund rose by $22 million to $17.985 billion during the week under review, the RBI data showed.
India’s reserve position in the International Monetary Fund (IMF) rose by $31 million to $4.991 billion during the week ended July 29, as per the RBI Weekly Statistical Supplement.