January 13, 2018 2:18:07 am
India’s foreign exchange reserves surged by $1.758 billion to hit a new record high of $411.124 billion in the week
to January 5, the Reserve Bank has said.
Foreign exchange reserves had jumped by $4.444 billion In the previous week to reach a fresh peak of $409.366 billion. The reserves had crossed the $400-billion mark for the first time in the week to September 8, 2017 but had since been fluctuating. The spike in reserves was due to a rise in foreign currency assets, a major component of the overall reserves.
The RBI said foreign currency assets rose by $2.045 billion to $387.149 billion. Expressed in the US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of the non-US currencies such as the euro, the pound and the yen held in the reserves. Gold reserves declined marginally by $294.4 million to $20.421 billion, the central bank said.
The RBI had remained net buyer of the US currency in November as it purchased $864 million from the spot market. In the month, the central bank purchased $2.570 billion from the spot market and sold $1.706 billion, according to the latest RBI data. In October, the central bank net bought $852 million of the greenback. In September, it had bought $1.259 billion of the US currency on net basis. The central bank’s intervention in the forex market is to curb volatility in the rupee.
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Meanwhile, on Friday, the rupee surrendered most of its early strong gains but eventually managed to end higher by a modest three paise at 63.63 against the US dollar in a highly volatile trade. Fresh bouts of dollar selling by local corporates and exporters along with growing expectations of more foreign fund inflows largely supported the recovery momentum. After plunging to a fresh low of 63.72 in the late afternoon deals, it managed to regain some lost ground and settled marginally higher at 63.63, revealing a gain of 3 paise or 0.05 per cent. For the week, the rupee lost 26 paise against the greenback, snapping a two-straight week rally.
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