India's foreign reserves climb for 6th week, reaching $645.5 billion

India's forex reserves hit all-time high of $645.5 billion for the sixth week in a row by March 29, as per data from the central bank. During that week, Foreign exchange reserves India increased by $2.95 billion, adding to the $26.5 billion gained over the previous five weeks. The Reserve Bank of India (RBI) intervenes in the foreign exchange market to stabilize the rupee against excessive fluctuations.

Changes in foreign currency assets occur due to RBI's intervention and fluctuations in the value of foreign assets held in reserves. India's forex reserves also include its reserve position in the International Monetary Fund (IMF).

Despite robust economic growth and significant investments in equity and debt markets, the RBI continues to accumulate reserves. RBI Governor Shaktikanta Das emphasized the importance of having substantial forex reserves as a protective measure against economic downturns or sudden market shocks.

During the same period, the rupee reached a record low of 83.45 against the US dollar but saw marginal gains by the end of the week, settling at 83.2950 on Friday, with a 0.1% increase.

Forex reserves surge in India, rise for sixth consecutive week stands as the testimony commitment to maintaining economic stability and resilience against global uncertainties.