India’s foreign exchange reserves jumped by $12.6 billion to cross $700 billion for the first time after reporting a steady climb for seven straight weeks, according to the Reserve Bank (RBI).
The overall kitty swelled by $2.838 billion to touch $692.296 billion during the previous week.
Click here to connect with us on WhatsApp
“Reserves rose because of revaluation gains, which were around $4.8 billion, and the rest was spot market purchases (dollars) by the RBI,” said Gaurav Sengupta, economist, IDFC First Bank.
“However, in the current week (ending October 4), there may be a smaller amount of foreign inflows due to geopolitical risks, and the RBI may have been selling dollars in the spot market to defend the rupee, so the increase won’t be as large,” she said.
Sengupta added that revaluation losses could also occur because US treasury yields are rising.
First Published: Oct 04 2024 | 8:32 PM IST