India's forex reserves rise $964 million to $675.15 billion: RBI

India's foreign exchange reserves increased by $964 million to $675.15 billion during the week ended July 10, according to data released by the Reserve Bank of India (RBI) on Friday.The increase was largely driven by a rise in foreign currency assets (FCAs), the biggest component of the country's forex reserves. FCAs climbed by $930 million to $546.508 billion during the reporting week.
The latest gain follows a sharp increase of $7.26 billion in the previous week ended July 3, when the country's forex reserves had risen to $674.193 billion. During that period, foreign currency assets had expanded by $4.51 billion to $545.578 billion.Earlier, in the week ended June 26, India's forex reserves had declined by $5.654 billion to $666.933 billion.
According to the RBI, gold reserves also registered a marginal increase, rising by $24 million to $105.223 billion during the week ended July 10.The country's Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) increased by $3 million to $18.626 billion, while India's reserve position with the IMF rose by $7 million to $4.793 billion.Foreign currency assets, expressed in US dollar terms, include the impact of changes in the value of non-US currencies such as the euro, pound sterling and Japanese yen held in the reserves.
According to agency reports,India's forex reserves had touched a record high of $728.494 billion in the week ended February 27 this year. However, reserves declined in the following weeks as geopolitical tensions in West Asia put pressure on the rupee, prompting the RBI to intervene in the foreign exchange market through dollar sales.Despite the moderation from record levels, the latest increase keeps India's forex reserves at a comfortable level, providing a strong buffer against external shocks, supporting the rupee, and enhancing the country's ability to meet external payment obligations.

(Business Correspondent)