News Brief
India's Foreign Exchange Reserves Rise For Second Consecutive Week To Reach $630.6 billion
RBI Governor Sanjay Malhotra
India’s foreign exchange reserves have risen for the second consecutive week, reaching $630.6 billion as of 31 January, according to Reserve Bank of India (RBI) Governor Sanjay Malhotra.
The reserves grew by $1.1 billion in the reported week, following a larger increase of $5.58 billion in the previous week, news agency Reuters reported.
The changes in the foreign exchange reserves are primarily influenced by the RBI's interventions in the forex market, alongside fluctuations in the value of foreign assets held in the reserves.
The central bank plays a crucial role in managing the volatility of the rupee by intervening in both buying and selling of foreign currencies.
During the week leading to 31 January, the rupee depreciated by 0.9 per cent against the US dollar, touching its then-record low of 86.6525 per dollar.
The rupee, along with other emerging market currencies, has faced pressure due to concerns that US President Donald Trump's tariff policies and sanctions on other nations could disrupt global trade and trigger inflation.
On Friday (7 February), the domestic currency was quoted at 87.43, marking nearly 1 per cent week-on-week decline.
India’s forex reserves also include its reserve tranche position in the International Monetary Fund (IMF), further contributing to the total value.
