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India’s Forex Reserves Climb to $702.78 Billion, Close to Record Peak

A jump in dollar holdings offset a fall in gold to bolster India’s buffers against currency swings

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Overview

  • Reserves increased by $4.84 billion to $702.78 billion for the week ended June 27, following a $1.01 billion decline the previous week.
  • Foreign currency assets rose by $5.42 billion to $594.82 billion, marking the key driver of this week’s gains.
  • Gold holdings dropped by $1.23 billion to $84.5 billion, SDRs increased by $158 million to $18.83 billion and India’s IMF reserve position rose by $176 million to $4.62 billion.
  • The current reserve level places India as the world’s fourth-largest holder with buffers ample to cover nearly a year of imports.
  • The Reserve Bank of India has used market interventions and strategic diversification to maintain external liquidity and support the rupee.