Mumbai: India's foreign exchange (forex) reserves rose by USD 6.561 billion to reach USD 531.081 billion for the week ended October 28, the RBI said on Friday.
The overall reserves, which have been on a falling spree, had slipped by USD 3.847 billion to USD 524.52 billion in the previous reporting week. In October 2021, the country's forex kitty had reached an all-time high of USD 645 billion. The reserves have been faling as the RBI deploys the kitty to defend the rupee amid pressures caused by global developments.
Foreign currency assets a major component of the overall reserves, increased by USD 5.772 billion to USD 470.847 billion during the week to October 28, according to the Weekly Statistical Supplement released by the RBI on Friday.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
The forex reserves had fallen to their lowest level since July 2020 to USD 524.52 billion for the week ending Oct 21.
According to the Weekly Statistical Supplement published by RBI, the increase in foreign exchange reserves can be linked to a rise in foreign currency assets (FCA), which make up a significant portion of the total reserves.
For the week ending October 28, foreign currency assets increased USD 5.77 billion to USD 470.85 billion. Increasing by USD 556 million to USD 37.762 billion, gold reserves.
When expressed in dollar terms, FCA is the result of the appreciation or depreciation of non-US currencies held in foreign exchange reserves, such as the euro, pound, and yen.
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