MUMBAI: Continuing the gains for the sixth consecutive week, forex reserves have rallied to hit new high of $692.3 billion for the week to September 20, adding $2.84 billion in the reporting week, taking the total in the past six weeks to $22.14 billion and a $101.56 billion year-on-year.
As per the latest weekly statistical supplement released by the RBI, the foreign exchange reserves hit record high of 692.296 billion for the week to September 20, adding $2.84 billion in the reporting week. In the previous reporting week ending September 13, the foreign exchange reserves were $689.46 billion, a record high. This was a rise of $220 million from the previous week.
The forex accretions would have been much higher had it not been for the regular intervention by the central bank in the forex market as rupee has been under tremendous pressure for over a quarter now having tested the sensitive 84 to a dollar mark in the middle of the current month.
Changes in foreign currency assets are caused by the RBI’s intervention in the foreign exchange market as well as the appreciation or depreciation of foreign assets held in the reserves. The RBI intervenes on both sides of the forex market to prevent undue volatility in the rupee.
Rupee has logged its best week of 2024 during the reporting week after plumbig 84 in the previous week intra-day. The rally since Spetember 17 was aided by a larger-than-expected 50 bps rate cut by the US Fed on September 17 as well as inflows into local stocks and bonds.