MUMBAI: A steep increase in the value of gold -- the price of the metal had peaked at $4,575/ounce during the week -- has pushed up the foreign exchange reserves by $3.29 billion to $696.61 billion in the week to December 26.
This marks a second consecutive week of accretion, following a substantial $4.36 billion increase in the preceding week, the Reserve Bank said Friday.
Of the total accretion of $3.29 billion, as much as $2.96 billion came in from the gold reserves which rose to $113.32 billion in the reporting week. Interestingly, it may be noted that on December 26, the price of gold had peaked intra-day at $4,575 an ounce. Since then it has come down by 4%. This was a historic high for the yellow metal.
According to the Reserve Bank’s weekly statistical supplement released on Friday, the total reserves rose by $3.29 billion to $696.61 billion in the week to December 26.
Foreign currency assets, the largest component of the reserves, stood at $559.61 billion, registering a marginal weekly increase of $184 million, the data showed. In dollar terms, foreign currency assets reflect valuation changes arising from movements in non-US currencies -- including the euro, pound and the yen -- held as part of India’s foreign exchange reserves.
The special drawing rights with the International Monetary Fund rose by $60 million to $18.80 billion, while the country’s reserve position in the Fund increased by $93 million to $4.88 billion.
Meanwhile, the rupee continued to be under pressure and closed the day at 90.30, down 20 paise from the previous close.