India's forex reserves gain $3.8 billion, crosses $700 billion

India’s foreign exchange reserves surged by $3.825 billion to reclaim the $700 billion mark, reaching $700.946 billion for the week ended April 10, according to data released by the Reserve Bank of India (RBI).The latest increase follows a strong rise of $9.063 billion in the previous reporting week ended April 3, when reserves had climbed to $697.121 billion. The rebound signals improving external stability after weeks of pressure triggered by geopolitical tensions in West Asia.
India’s forex kitty had touched an all-time high of $728.494 billion in the week ended February 27. However, reserves declined subsequently as the rupee came under strain amid global uncertainties, prompting the central bank to intervene in currency markets through dollar sales to stabilise the domestic unit.For the week under review, foreign currency assets (FCAs)  the largest component of the reserves rose by $3.127 billion to $555.983 billion, RBI data showed. These assets reflect the impact of movements in major global currencies such as the euro, pound, and yen held in the reserves.Gold reserves also recorded an uptick, increasing by $601 million to $121.343 billion during the week, highlighting continued diversification in India’s reserve assets.
Meanwhile, Special Drawing Rights (SDRs) rose by $56 million to $18.763 billion. India’s reserve position with the International Monetary Fund also improved, increasing by $41 million to $4.857 billion, according to the central bank.The steady rise in reserves indicates a recovery in external buffers, supported by favourable capital flows and easing currency pressures, even as global uncertainties persist.

(Business Correspondent)