India’s forex reserves jump $2.3 billion to $703.3 billion: RBI Data

India’s foreign exchange reserves continued their upward trajectory, crossing the $703 billion mark in the week ended April 17, according to the latest data released by the Reserve Bank of India (RBI).

The country’s forex kitty rose by $2.36 billion to $703.31 billion during the week under review. Within this, foreign currency assets (FCA), the largest component of the reserves, increased by $1.48 billion to $557.46 billion.

The latest uptick comes after reserves had climbed by $3.825 billion to $700.946 billion in the week ended April 10, indicating a sustained recovery over the past few weeks.

Notably, India’s forex reserves had touched an all-time high of $728.494 billion in late February.

Also read: India’s forex reserves rise $3.8 billion to $700.9 billion, led by foreign currency assets and gold gains

However, they declined in the subsequent weeks amid rising geopolitical tensions in West Asia, which exerted pressure on the rupee and led the RBI to intervene in the currency market through dollar sales.

Forex reserves remain a key buffer for the economy, helping the central bank manage currency volatility and ensuring stability in external trade.

A strong reserve position also provides the RBI with room to intervene during periods of heightened market uncertainty, while signalling steady foreign currency inflows into the system.