Indian forex reserves record highest weekly gains in one year

5 November, 2022 | Pranay Lad

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India's foreign exchange reserves increased by $6,561 million at this time, from $524,520 million in the week ending October 21 to 531,081 million in the week ending October 28.

Compared to the previous week, when they were $524,520 million, India’s foreign exchange reserves increased by $6,561 million to reach 531,081 million by the end of the week on October 28.

According to the Reserve Bank of India’s (RBI) weekly statistical supplement released on Friday, this is the largest weekly growth since September 2021. Additionally, the foreign currency assets (FCA), which make up the majority of forex reserves, increased by $5,772 million to $470,847 million in the week ending October 28. FCA was worth $465075 billion on October 21 in the previous week.

Due to the RBI’s intervention in the currency markets and changes in valuation brought on by the US dollar strengthening to a level not seen in more than two decades, reserves have decreased by 16% this year.

In the week ending October 28, gold reserves increased by $556 million to $37,762 million.

The International Monetary Fund (IMF) reported a reserve position of $4,847 billion, an increase of $48 million over the previous week.

In the interbank foreign exchange market on Friday, the Indian rupee strengthened and ended the day at 82.44 against the US dollar. Due to a rise in the Chinese yuan brought on by expectations of a reduction in US-China tensions, the rupee strengthened.

After being tumultuous on Friday afternoon, the stock markets rose on Saturday. On Friday, the markets ended their two-day losing streak.