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Business News/ News / India/  India's forex reserves rise by $4.53 bn to reach a 10-month high of $588.78 bn
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India's forex reserves rise by $4.53 bn to reach a 10-month high of $588.78 bn

As per RBI's data, forex reserves jumped by $4.532 billion to $588.780 billion in the April 28, 2023, week. This is compared to a decline of $2.164 billion in the previous week that ended on April 21, 2023.

Sharp upside in foreign currency assets boosted the overall weekly performance. (Bloomberg)Premium
Sharp upside in foreign currency assets boosted the overall weekly performance. (Bloomberg)

India's forex reserves turned positive in the week that ended on April 28, 2023. The foreign exchange reserves of the country climbed by $4.532 billion to $588.780 billion in the week under review. With that, the reserves have surged to a 10-month high. Foreign currency assets which hold the largest weightage in reserves boosted the weekly performance.

As per RBI's data, forex reserves jumped by $4.532 billion to $588.780 billion in the April 28, 2023, week. This is compared to a decline of $2.164 billion in the previous week that ended on April 21, 2023.

Foreign currency assets (FCA) zoomed by $4.996 billion to come at $519.485 billion in the latest week --- compared to a drop of $2.146 billion in the previous week.

In the week that ended on April 28, SDRs also saw a rise of $35 million to $18.466 billion. However, gold reserves dipped by $494 million to $45.657 billion, and reserve position in the IMF also plunged but at a meager of $4 million to $5.172 billion.

Read here: Data recap: PMI hints at relief, Go First goes bust

India's forex reserves were at an all-time high of $645 billion in October 2021. To tame rupee depreciation, RBI has been intervening in the forex market via both spot and forward positions.

Meanwhile, India’s foreign exchange reserves were placed at $ 578.4 billion as on March 31, 2023.

In its April 2023 bulletin, RBI said, "Overall, the broadening of economic activity; the expected moderation in inflation; the fiscal consolidation with focus on capital spending; the significant narrowing of the current account deficit to more sustainable levels; and the comfortable level of foreign exchange reserves are welcome developments which will further bolster India’s macroeconomic stability. This allows monetary policy to remain unwaveringly focused on inflation."

Read here: Have India, Russia suspended negotiations to settle trade in rupees? All you need to know

Currently, the Indian rupee is near 81.80 levels against the US dollar. On Friday, the forex market was closed. Overall, the local unit has seen minor gains in the week.

Going ahead, Jateen Trivedi, VP Research Analyst at LKP Securities said, "Rupee range can be seen between 81.50-82.00 after FED's desk hinted towards a dovish stance which can help the rupee going ahead, Crude prices in downtrend can also set a positive tone for the rupee as price of Crude has seen strong drift downwards."

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Published: 05 May 2023, 06:14 PM IST
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