India’s forex reserves almost touch $600 billion, hit one-year high


NEW DELHI: India’s foreign exchange reserves continue to rise, approaching US$600 billion, the highest level in almost a year.
For the week ended May 12 for which data is available, reserves increased by $3.553 billion to $599.529 billion.
Before the week of May 12, they increased by $7.196 billion to $595.976 billion. RBI data showed.
Going back to the latest RBI data, India’s foreign currency assets are the biggest chunk of it foreign exchange reservesincreased by US$3.577 billion to US$529.598 billion.
Gold reserves rose $38 million last week to $46.353 billion.
In October 2021, the country’s foreign exchange reserves reached an all-time high of about $645 billion.
Much of the decline since then can be attributed to an increase in the cost of imported goods in 2022.
Also, FX reserves had fallen largely due to the RBI’s intervention in the market to defend the depreciating rupee against a strengthening US dollar.
Typically, the RBI will intervene in the market from time to time through liquidity management, including selling dollars, to prevent the rupee from depreciating sharply.
RBI closely monitors the foreign exchange markets and only intervenes to maintain orderly market conditions by controlling excessive exchange rate volatility without reference to a pre-determined target level or range. (ANI)

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