Mumbai: India’s forex reserves surged by a massive $3.572 billion to touch a record high of $398.122 billion for the week ended 1 September, on account of rise in foreign currency assets, Reserve Bank of India (RBI) data showed on Friday.

In the previous week, the reserves had increased by $1.148 billion to $394.55 billion.

Last month, American brokerage Morgan Stanley had forecasted that the reserves might touch the $400 billion mark in the week to 8 September. And if the rise in the kitty continues with the same speed, it may cross that magic numbers next week.

The foreign currency assets (FCAs), a major component of the overall reserves, increased by $2.808 billion to $373.641 billion for the reporting week, according to the RBI data.

Expressed in US dollar terms, FCAs include the effect of appreciation or depreciation of non-US dollar currencies, such as the euro, the pound and the yen held in the reserves. After remaining unchanged for many weeks, gold reserves also rose by $748.3 million to $20.691 billion.

The special drawing rights with the International Monetary Fund (IMF) increased by $6.5 million to $1.506 billion, the apex bank said. The country’s reserve position with the IMF also increased by $9.8 million to $2.283 billion, it said.