India’s foreign exchange reserves rose $2.3 billion in the week ending August 30 to a new record high of $683.99 billion, according to the latest data published by the Reserve Bank of India.
This is the third consecutive weekly rise of forex reserves backed by healthy dollar inflows. In the past three weeks, reserves rose by 13.9 billion, RBI data showed.
In the week ending August 30, the rise in reserves has likely reflected the impact of MSCI (Morgan Stanley Capital International) rebalancing its indices which resulted in about $5.5 billion inflows on August 30, people aware of the development said.
According to the granular data, India’s foreign currency assets in the reporting week rose by $1.49 billion to $599 billion. The foreign currency assets reflect the effect of appreciation or depreciation of the reserves held in other global currencies like euro, pound and yen.
Reserves held in gold rose $893 million to $61 billion, RBI data showed.
