India's Forex Reserves Rise By USD1.15 Billion To USD585.89 Billion

India's foreign exchange reserves rose by $1.153 billion to $585.895 billion for the week ending October 13, showed the latest data by the Reserve Bank of India (RBI) on Friday. The jump in forex reserves is seen after several weeks of decline in the country's forex reserves.

For the week ended October 13, the foreign currency assets, a major component of the reserves, declined by $178 million to $519.351 billion, as per the Weekly Statistical Supplement released by the RBI.

Represented in dollar terms, the foreign currency assets include the effect of a rise or fall in the value of non-US units such as the euro, pound, and yen held in the foreign exchange reserves.

Earlier for the week ended October 6, forex reserves reduced by $2.17 billion to $584.742 billion.

India's forex kitty hit an all-time high of $645 billion in October 2021. Later, the reserve felt the brunt of the central bank's strategy to defend the rupee amidst pressures caused mostly by global developments since last year.

According to the RBI data, during the week, Gold reserves soared $1.268 billion to $43.575 billion. The Special Drawing Rights (SDRs) rose by $72 million to $17.995 billion, said the central bank. India's reserve position with the IMF was fell by $8 million to $4.975 billion in the reporting week, revealed the the apex bank data.

Usually, it is seen that the RBI from time to time intervenes in the market by way of liquidity management, including through the selling of dollars, in a bid to prevent a stark depreciation in the domestic unit, Rupee.

The RBI intervention is necessary to maintain orderly market conditions by controlling excessive volatility in the exchange rate.