Politics · India Bureau
India's forex reserves touch new peak of $729.3 billion
India's foreign exchange reserves surged to an all-time high of $729.328 billion in the week ended August 21, driven by a sharp $12.4 billion increase. The reserves have now eclipsed the previous peak set earlier this year before geopolitical tensions triggered a period of decline.
LSN India ·
The Reserve Bank of India announced on Friday that the nation's forex kitty climbed $12.422 billion during the week ended August 21, marking a new record. The previous week had seen a more modest increase of $9.905 billion, bringing reserves to $716.907 billion at that time.
The latest surge pushes India's forex reserves past the previous all-time high of $728.494 billion, which was recorded during the week ended February 27. That earlier peak was followed by several weeks of outflows as geopolitical tensions in the Middle East prompted the RBI to intervene in currency markets through dollar sales to support the rupee.
Foreign currency assets, the primary constituent of total reserves, increased by $9.482 billion to reach $591.333 billion during the reporting week. When expressed in dollar terms, these assets reflect the combined impact of currency movements against the US dollar, including fluctuations in holdings of euros, pounds, yen and other major currencies.
The strengthening forex position comes at a time when India's external sector has demonstrated resilience amid volatile global conditions. The accumulation of reserves provides the central bank with greater ammunition to manage currency stability and cushion against external shocks.