India’s forex reserves rise by $305 million; rupee hits strongest weekly gain in two years
New Delhi: India’s foreign exchange reserves increased by $305 million to $654.27 billion in the week ended March 14, reaching a more than three-month high, according to Reserve Bank of India (RBI) data released on Friday.
In the previous week, reserves had jumped by $15.27 billion—the largest weekly surge since August 2021—partly due to the RBI’s $10 billion forex swap. However, the latest rise was relatively modest, reflecting market interventions and revaluation effects, as reported by Reuters.
Breakdown of forex reserves
Foreign currency assets, a key component of reserves, declined by $96 million to $557.19 billion, while gold reserves increased by $66 million to $74.39 billion.
The RBI has been actively managing rupee volatility through interventions, selling dollars in the spot market and conducting buy-sell swaps to stabilise liquidity. During the period, the rupee fell 0.1% week-on-week but gained 1.2% in the last week, closing at 85.9725 against the US dollar.
IMF reserves and SDRs
India’s reserve position with the International Monetary Fund (IMF) grew by $283 million to $4.43 billion, while Special Drawing Rights (SDRs) increased by $51 million to $18.26 billion.
Forex reserves had peaked at an all-time high of $704.88 billion in September 2024 but have since fluctuated due to currency valuation shifts and RBI interventions.
Rupee records biggest weekly gain since 2023
On Friday (March 21), the rupee strengthened by 36 paise to close at 86 per US dollar, marking its strongest weekly gain in over two years. The rally was supported by robust foreign inflows and positive domestic equity trends.
Over the past six sessions, the rupee has gained 123 paise—the highest weekly rise since January 2023.
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