The foreign exchange (forex) reserves of India jumped by $4.039 billion to reach $598.897 billion for the week ended September 1, after declining for two weeks straight, the Reserve Bank data showed on Friday. The reserves had dropped by $30 million to $594.858 billion in the previous reporting week.
The RBI's Weekly Statistical Supplement on Friday showed that Foreign Currency Assets (FCAs) rose by $3.442 billion to $530.691 billion for the week ending September 1. Foreign currency assets (FCAs) are a crucial component of the forex reserve and take into account the impact of changes in value for currencies such as the euro, pound, and yen held in the reserves. FCAs are valued in US dollars. Foreign Currency Assets (FCAs) are held in diverse currencies like the US dollar, Euro, pound sterling, Australian dollar, etc.
The country's foreign exchange reserves touched a historical high of $645 billion in October 2021. However, they have been declining since, as the RBI deployed its resources to cushion the rupee amid pressures from global developments.
The RBI data on Friday also showed that Gold reserves rose $584 million, settling at $44.939 billion. The Special Drawing Rights (SDRs) also increased by $1 million to $18.195 billion. India's reserve position with the International Monetary Fund (IMF) rose by $12 million to $5.073 billion in the reporting week.
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According to a Reuters report, for the reporting week, the rupee fell marginally against the dollar and traded in a range of 82.5225 to 82.8075. On Friday, the rupee ended at 82.9450, marking a 0.4 per cent decline over the past 5 days, as per the news agency.