India's Forex Reserves Jump $3.5 Billion To $599.53 Billion, Nearly 1-Year High

For the week ended May 12, the foreign currency assets, a major component of the reserves, increased by nearly $3.577 billion to $529.598 billion, according to RBI data released on Friday

The overall reserves had jumped by $7.196 billion to $595.976 billion for the previous reporting week. ( Image Source :Getty )

India's foreign exchange (Forex) reserves rose for a third consecutive, adding $3.553 billion to $599.53 billion for the week ended May 12, their highest level since early June, according to the Reserve Bank of India's (RBI) statistical supplement relesed on Friday.

The overall reserves had jumped by $7.196 billion to $595.976 billion for the previous reporting week.

In October 2021, India's foreign exchange reserves reached a record high of $645 billion. However, these reserves have been decreasing as the central bank uses them to protect the value of the rupee amidst challenges caused mainly by global factors.

The central bank takes action in the currency markets to prevent sudden and drastic movements in the value of the rupee. Changes in forex reserves can also result from gains or losses in the value of the assets held.

According to a Reuters reports, the RBI's ongoing intervention to boost reserves is putting pressure on the optimistic outlook for the rupee held by some foreign banks. In the week covered by the forex reserves data, the rupee experienced a 0.4 per cent decline, influenced by the overall strength of the US dollar.

During the week, the rupee traded within a range of 81.6900 to 82.2250, the news agency said. 

For the week ended May 12, the foreign currency assets, a major component of the reserves, increased by nearly $3.577 billion to $529.598 billion, according to the Weekly Statistical Supplement released by the RBI on Friday. 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 increased by $38 million to $46.353 billion, the RBI said.

The Special Drawing Rights (SDRs) were down by $35 million to $18.413 billion, the apex bank added.

The country's reserve position with the IMF was down by $28 million to $5.164 billion in the reporting week, the apex bank data showed.