Forex Reserves Rise $5.98 Billion To $578.78 Billion: RBI

It can be noted that in October 2021, India's forex kitty had reached an all-time high of $645 billion

In the previous reporting week, India's forex reserve had risen by $12.8 billion to $572.8 billion. ( Image Source :Getty )

In a second consecutive weekly increase, India's forex reserves rose $5.977 billion to $578.778 billion in the week ended March 24, the Reserve Bank of India (RBI) said on Friday. In the previous reporting week, the kitty had risen by $12.8 billion to $572.8 billion.

It can be noted that in October 2021, the country's forex kitty had reached an all-time high of $645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments.

For the week ended March 24, the foreign currency assets, a major component of the reserves, increased by $4.38 billion to $509.728 billion, according to the Weekly Statistical Supplement released by the RBI.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves jumped by $1.37 billion to $45.48 billion, the RBI said. The Special Drawing Rights (SDRs) were up by $201 million to $18.419 billion, the apex bank said. The country's reserve position with the IMF was also up by $27 million to $5.151 billion in the reporting week, the apex bank data showed. 

Meanwhile, the rupee on Friday appreciated 17 paise to 82.17 against the US dollar as foreign capital inflows and a rally in domestic stocks bolstered investor sentiment.

Besides, easing global crude oil prices and rising appetite for riskier assets also supported the domestic unit, forex traders said. However, a strong dollar against major rivals overseas ahead of US inflation data capped the rupee's gain, they added.

At the interbank foreign exchange market, the domestic unit opened strong at 82.12 and touched an intra-day high of 82.09 and a low of 82.26 against the greenback. The local unit quoted at 82.17 at 1530 hrs, registering a gain of 17 paise over its previous close of 82.34.