According to figures issued by the central bank on Friday, the Reserve Bank of India’s (RBI) foreign exchange reserves reached a new high of $709.4 billion. In the week ending January 23, foreign currency assets increased by $2.37 billion, gold reserves increased by $5.6 billion, and the total FX reserves increased by $8.05 billion.
The week’s 8.5% increase in gold prices to $4,987 an ounce contributed to the reserves’ increase. Forex reserves were earlier at a peak of $704.89 billion in September 2024. Following the RBI’s settlement of a matured NDF (Non-Deliverable Forward) position in the OTC market on January 16 for about $3 billion, reserves also increased.
The RBI’s substantial foreign exchange reserves, according to dealers, reassure the market since they demonstrate that they have the funds to sustain the rupee. Trade uncertainty and ongoing outflows have been putting pressure on the domestic currency for some time. On Friday, it ended at a record low of 91.99.
