India's forex reserves grow $5.98 billion to $578.78 billion
Mumbai: India's foreign exchange reserves jumped $5.98 billion to $578.78 billion as on March 24, 2023, Reserve Bank of India (RBI) data showed on Friday.
Data for the previous week showed that India's foreign exchange reserves rose to $572.8 billion, the highest level since early February.
India's foreign currency assets (FCA), the biggest component of the forex reserves, grew by $4.38 billion to $509.72 billion.
India's gold reserves rose by $1.37 billion to $45.48 billion while SDRs and India's reserve position in the IMFs saw an increase of $18.41 million and $5.15 million each.
At the beginning of 2022, the total foreign exchange reserves stood at $633 billion.
The decrease in reserves can largely be attributed to the Reserve Bank of India's recent intervention in the forex market and an increase in the cost of imported goods.
On Friday, the Indian rupee strengthened against the US dollar, supported by anticipated inflows related to the end of the fiscal year and robust performance in the local equity markets. The rupee closed at 82.1650 against the dollar, compared to its previous close of 82.3375.
The Indian currency has ended a five-quarter streak of losses with a 0.67% gain. However, for the entire financial year, it experienced a 7.8% decline, marking its largest loss since 2020.
On the final day of the fiscal year, Indian equities rallied 1.6%, following the trend of most Asian shares rising, and European stocks opening higher, as concerns about a broader banking crisis appeared to subside.