New Delhi: India’s foreign exchange reserves recorded a notable increase of over 2.3 billion dollars, reaching 703.3 billion dollars for the week ending April 17, according to data released by the Reserve Bank of India. The rise follows a previous weekly gain, reflecting continued resilience in the country’s external financial position despite global uncertainties.
The reserves had earlier touched a record high of 728.49 billion dollars in late February before declining in subsequent weeks amid escalating tensions in West Asia. The geopolitical situation has exerted pressure on the Indian rupee, prompting the central bank to step in through dollar sales to stabilise the currency.
A major contributor to the latest increase was the growth in foreign currency assets, which rose by 1.48 billion dollars to 557.46 billion dollars. These assets form the largest component of the reserves and are influenced by fluctuations in global currencies such as the euro, pound and yen.
Gold holdings also strengthened during the week, increasing by 790 million dollars to reach 122.13 billion dollars. This rise added further support to the overall reserves position, reflecting diversification in the country’s asset base.
In addition, Special Drawing Rights held with the International Monetary Fund saw a modest increase of 78 million dollars, while India’s reserve position with the IMF rose slightly to 4.87 billion dollars.
The overall uptick in reserves comes at a time when global markets remain volatile due to geopolitical developments. Despite these challenges, the increase signals a degree of stability in India’s external sector, supported by active management from the central bank and a balanced composition of reserve assets.
The movement in reserves will continue to be closely watched as global conditions evolve and their impact on currency markets persists.
