MUMBAI: Despite the weakening rupee, the forex reserves rose over $5 billion to $696.66 billion in the week to June 6, inching closer to the record high of $705 billion during the end of last September.
According to the weekly data from the Reserve Bank, the foreign exchange reserves climbed by $5.17 billion to reach $696.66 billion for the week to June 6. This increase follows a previous dip of $1.2 billion, bringing the reserves down from a nearly eight-month high at $691.5 billion on May 30.
The reserves had peaked at $704.885 billion in the week to September 27, 2024, and since then had declined by more than $150 billion, before rising again, as the rupee came under significant stress following the Trump inauguration and his policy flip-flops.
For the latest week, foreign currency assets, a major component of the reserves, rose $3.47 billion to $587.69 billion. Expressed in greenback 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.
Reflecting the rally in gold prices, its reserves rose $1.5 million to $85.88 billion during the week, the RBI said, while the special drawing rights rose $102 million to $18.67 billion and the country’s reserve position with the IMF also rose $14 million to $4.4 billion.