India's forex reserves rise $7.26 bn to $674.19 bn: RBI

India's foreign exchange reserves rose by $7.26 billion to $674.193 billion during the week ended July 3, reversing the previous week's decline, according to data released by the Reserve Bank of India (RBI) on Friday.The country's forex reserves had fallen by $5.654 billion to $666.933 billion in the previous reporting week.
According to agency reports, India's foreign exchange kitty had touched a record high of $728.494 billion in the week ended February 27 this year. However, reserves witnessed a series of declines following the onset of the Middle East conflict, which put pressure on the rupee and prompted the RBI to intervene in the foreign exchange market through dollar sales to curb volatility.
According to the RBI, foreign currency assets (FCAs), the largest component of the country's forex reserves, increased by $4.51 billion to $545.578 billion during the reporting week.Expressed in US dollar terms, FCAs include the impact of appreciation or depreciation of non-US currencies such as the euro, pound sterling and Japanese yen held in the reserves.Gold reserves also registered a sharp increase, rising by $2.669 billion to $105.205 billion during the week.The country's Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) increased by $65 million to $18.623 billion.
Meanwhile, India's reserve position with the IMF edged up by $15 million to $4.787 billion during the reporting week, the central bank's data showed.The latest rise in reserves strengthens India's external sector buffer, providing support against global financial market volatility and enhancing the country's ability to manage external shocks.

(Business Correspondent)