As per the figures released by the central bank on Friday, India’s foreign exchange reserves reached a new high of $689.24 billion as of September 6, continuing their winning streak for a record fourth week.
After increasing by an overall of $13.9 billion over the previous three weeks, the reserves increased by $5.3 billion during the reporting week.
To stop the rupee from experiencing excessive volatility, the RBI intervenes on both ends of the foreign currency market.
The local currencies, which has been trading at 84 per US dollar in recent sessions, was spared a more severe collapse thanks to these interventions in the spot market by state-run banks, according to dealers.
The rupee dropped 0.1% vs the US dollar and moved in a narrow range during the week that ended on September 6.
The rupee improved by about 0.1% on a weekly basis, marking its greatest weekly performance after the week concluded on June 25. It concluded at 83.8875 on Friday.
Both the appreciation or depreciation of foreign assets kept in reserves and RBI intervention lead to changes in foreign currency assets.
India’s reserve amount position in the IMF is also included in its foreign exchange reserves.
