India's forex reserves reach 4-month high of $607 billion
India's forex reserves have experienced a boost, rising by $2.816 billion to reach a four-month high of $606.859 billion during the week ending December 8. This increase comes on the heels of a $6.107 billion jump to $604.042 billion in the previous week. Back in October 2021, India's forex reserves hit a record high of $645 billion before facing challenges, as the central bank used these funds to support the Rupee amidst global pressures.
Foreign currency assets and gold reserves
During the same week, foreign currency assets, which make up a large portion of the reserves, grew by $3.089 billion to $536.699 billion. These assets, expressed in US Dollars, account for fluctuations in non-US currencies like the Euro, Pound, and Yen within the foreign exchange reserves. However, RBI data reveals that gold reserves dipped by $199 million to $47.13 billion during this period.
Rupee gains and reserve position with IMF
In other news, the Indian Rupee experienced its largest single-day gain in over eight months, surging 33p against the US Dollar today. The INR closed at Rs. 83.00 a Dollar, up 0.4% from its previous close of Rs. 83.33. Meanwhile, India's reserve position with the International Monetary Fund (IMF) dropped by $11 million to $4.842 billion during the reporting week. The Special Drawing Rights decreased by $63 million to $18.188 billion.
