India’s forex reserves have increased yet again, RBI data shows. This is the fifth consecutive week of a jump in the overall reserves.
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India’s forex reserves increased by $140 million to touch its all-time high of $642.631 billion during the week ended March 22, the Reserve Bank of India said.

This is the fifth consecutive week of a jump in the overall reserves. The kitty had increased by $6.396 billion to $642.492 billion in the previous reporting week.

The previous peak was recorded in September 2021, when the country’s foreign exchange reserves reached $642.453 billion. The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year.

For the week ended March 22, the foreign currency assets, a major component of the reserves, decreased by $123 million to $568.264 billion, the data released on March 29 showed.

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 up

Gold reserves increased by $347 million to $51.487 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) were down by $57 million to $18.219 billion, the apex bank said. India’s reserve position with the IMF was also down by $27 million to $4.662 billion in the reporting week, the RBI data showed.

The Rupee depreciated eight paise to settle at 83.06 (provisional) against the U.S. dollar on February 5, as strengthening American currency overseas and negative sentiment in the domestic equity markets weighed on the local unit.

“However, the downward trend in the global crude oil prices supported the domestic unit and restricted its decline,” forex traders said.

At the interbank foreign exchange, the Rupee opened at 83.03 against the dollar and traded in the narrow range of 83 to 83.07. The local unit finally settled at 83.06 (provisional) against the greenback, down eight paise over its previous close. The Rupee settled flat at 82.98 against the dollar on February 2.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.33% higher at 104.12.

Analysts said the U.S. dollar gained strength after macroeconomic data showed steady growth in the world’s largest economy, while investors were keeping a close watch on the Reserve Bank of India’s monetary policy decision to be announced later this week.

Brent crude futures, the global oil benchmark, declined 0.14% to $77.22 per barrel. On the domestic equity market front, Sensex fell 354.21 points or 0.49% to 71,731.42 points. The Nifty dipped 82.10 points or 0.38% to 21,771.70 points.

A monthly survey released on Monday showed India’s services sector growth rose to a six-month high in January as new business expanded at a faster pace amid buoyant demand from domestic and external clients.

The seasonally adjusted HSBC India Services PMI Business Activity Index rose to 61.8 in January, up from 59 in December. Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth ₹70.69 crore, according to exchange data.

“India’s forex reserves increased $591 million to $616.733 billion for the week ended January 26,” the Reserve Bank of India said on February 2.