India’s forex reserves rise to a new high of $354 billion

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KOLKATA: The Reserve Bank of India’s intervention in the foreign exchange market has taken the foreign currency reserves to $354.289 billion at the end of June 12, according to data released by the central

This is a new high for India’s forex reserves, which rose by $1.575 billion in the reporting.

RBI does not give any reason behind the weekly movement in reserves but forex market dealers said that the central bank keeps intervening in the market to make the rupee hover around 63 against the US greenback.

“The RBI bought dollars from open market when the rupee gained to the 62 levels and sold them when the rupee touched 64.50 levels,” a forex dealer said requesting anonymity.

A relative week rupee makes export competitive but RBI does not allow too much volatility as a rule. The rupee closed at 63.52 a dollar Friday.

RBI data showed that foreign currency assets rose $1.569 billion to $329.582 billion. Foreign currency assets constitute the bulk of the reserves and reflect the change in the value of reserves held in other global currencies, including the euro, pound and yen due to exchange rate movements. Gold reserves remained unchanged at $19.340 billion.

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