India's Forex Reserves Hit Record High For Six Straight Week To Top $700 Billion
The month of September has seen Rs 93,538 crore make its way into Indian bonds and equities.
(Source: Unsplash)
India's foreign exchange reserves swelled to a fresh record high of $704.89 billion for the week ended Sept. 27, the Reserve Bank of India's data showed on Friday. This is the sixth consecutive time that the forex reserves have hit a record high.
The country's forex kitty rose $12.58 billion over the previous reporting week.
Foreign investors have pumped in Rs 2.34 lakh crore into the country's debt and equity markets so far this year, according to data from the National Securities Depository Ltd.
The month of September has seen Rs 93,538 crore make its way into Indian bonds and equities.
The Indian rupee closed flat at Rs 83.97 against the US dollar on Friday due to RBI intervention in the forex market that offset the impact of consistent FPI outflows from domestic equity due to rising tension in the Middle East. While, Gold prices on Friday increased Rs 267 to Rs 76,511 per 10 grams in futures trade as speculators created fresh positions on a firm spot demand.
For the week ended Sept. 20, foreign currency assets—a major component of the reserves—rose $10.4 billion to $616.15 billion, according to the RBI data.
In dollar terms, foreign currency assets include the effect of the appreciation or depreciation of non-US units like the euro, pound, and yen held in foreign exchange reserves.
Gold reserves increased $2184 million to $65.79 billion during the week.
India remains the fourth-highest foreign exchange reserve holder in the world. The reserves are equivalent to around 11 months of imports projected for the current financial year and about 99% of total external debt outstanding at the end of March, the central bank said in its July bulletin.
