India's forex reserves hit record $651.5 billion

On 7th June, RBI Governor Shantikanta Das said that India’s foreign exchange reserves hit a record high of $651.5 billion as of 31st May, 2024.

“India’s external sector remains resilient and the key external vulnerability indicators continue to improve,” the Central Bank’s Governor said while announcing the latest interest rate decision. He further added, “Overall, we remain confident of meeting our external financing requirements comfortably.”

The reserves which rose by $4.8 billion in the reporting week saw the biggest rise in over 2 months. In the prior week, they had fallen by $2 billion.

Curb excess volatility in the rupee’s value, the RBI intervenes in the forex market.

Changes in foreign currency assets are caused by the invention of RBI along with the appreciation/depreciation of foreign assets held in the reserves.

India’s reserve tranche position in the International Monetary Fund is also included in forex reserves.

In the week for which the forex data is concerned, the rupee traded in a range of 83.04 to 83.4775 against US dollar, and logged its worst week in over 2 months. The currency is currently trading at 83.50 as of 10th June, 2024

Related News: RBI Monetary Policy June 2024: Key Lending Rate Unchanged At 6.5%

By Kashish

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