For the week ending April 28, India's foreign exchange reserves increased to a 10-month high of $588.8 billion, according to data released by the RBI (Reserve Bank of India). That is $4. 5 billion more from the prior week.
The reserves had dropped by $2. 2 billion to $584. 3 billion in the previous reporting week. In October 2021, foreign exchange reserves had touched an all-time high of $645 billion. The central bank intervenes in the spot and forwards markets to prevent runaway moves in the rupee. Changes in foreign exchange reserves also stem from valuation gains or losses.
Earlier this week, media reported, citing traders, that the RBI was likely buying dollars via public sector banks to ensure that the rupee remained in a narrow range.
The rupee had a weekly end value of 81.61 and had moved in a range of 82.01 to 82.61 versus the US dollar. The data on foreign exchange reserves was released last week. The local currency reached an intraday high of 81. 61 on April 27. This was a three-month high.