India’s forex reserves edge towards $600 billion, hit near 1-year high


MUMBAI: India’s foreign exchange reserves rose for the third straight month to stand at $599.53 billion in the week ended May 12, the highest since early June, according to the Reserve Bank of India (RBI) Statistics supplement shown on Friday.
That’s an increase of $3.55 billion from the previous week. Reserves had risen by a total of $11.7 billion over the past two weeks.
The central bank is intervening in the spot and futures markets to prevent uncontrolled movements of the rupee. Changes in foreign exchange reserves also result from valuation gains or losses.
The optimistic outlook for the rupee, which several overseas banks hold, is being severely tested by the RBI’s continued intervention to support reserves, Reuters reported earlier this week, citing tax officials and economists.
In the week covered by the FX Reserves data, the rupee fell 0.4% on broader dollar index strength. The local unit was trading in a range of 81.6900 to 82.2250.
The rupee fell further this week, down 0.6%, its sharpest fall in two months. The local unit closed at 82.66 against the dollar on Friday.

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