The Reserve Bank of India (RBI) reported that for the week ending May 17, forex reserves increased by $4.5 billion to an all-time high of $648.7 billion. The week ending May 17 saw an increase in the rupee of 17 paise, or 0.20%.
The entire Forex kitty has increased for the past three weeks running. The week ending May 10 saw a $2.6 billion increase in forex reserves to $644.1 billion. Before this, the reserves had reached an all-time high in the week that concluded on April 5 of $648.6 billion.
The week ending May 17 saw a $3.4 billion increase in foreign currency assets to $569 billion. At $57.2 billion, gold reserves increased by $1.2 billion. There was a $113 million increase in special drawing rights to $18.2 billion. The International Monetary Fund’s reserve holding dropped to $4.3 billion from $168 million.
The rupee demonstrated durability in the face of tremendous economic development in India and substantial fund inflows from DIIs into the capital markets, even though the dollar index has been trading higher recently. For the rupee, a range of 82.90 to 83.35 is anticipated.
