MUMBAI: India’s forex reserves rose $12.74 billion to hit 15-month high of $609 billion in the week ended July 14, according to Reserve Bank of India (RBI) released on Friday. The reserves had risen by $1.23 billion to $596.28 billion in the previous week.
According to analysts, a major portion of the rise in forex reserves is driven by revaluation gains due to dollar weakness and reduction in US treasury yields while the rest of the gains were due to the RBI’s forex purchases in the spot foreign exchange markets.
India’s forex kitty reached an all-time high of $645 billion in October 2021. For the week ended July 14, the foreign currency assets, a major component of the reserves, increased by $11.198 billion to $540.166 billion, according to the Weekly Statistical Supplement released by the RBI on Friday. Gold reserves were up by $1.14 billion to $45.197 billion, the RBI said. Meanwhile, the rupee declined 4 paise to close at 81.97 against the US dollar on Friday, impacted by a rebound in the American currency and firm crude oil prices in global markets.