Biggest Weekly Surge in Five Months: India’s Forex Reserves Hit $665 Billion

India’s foreign exchange reserves have soared by $6.596 billion, reaching $665.396 billion as of March 28, marking the biggest weekly rise in nearly five months, according to the Reserve Bank of India (RBI).

This sharp increase comes amid a three-week rally, with forex reserves swelling by a total of $20.1 billion. Experts link the previous declines to weakened investor confidence in the Indian equity markets, but the latest surge signals a strong comeback.

As per the RBI, India’s gold reserves currently stand at $77.793 billion, while foreign currency assets are valued at $565.014 billion. The rising reserves coincided with a 0.6% appreciation of the Indian Rupee against the US Dollar, indicating renewed foreign investment confidence in Indian markets.

While fluctuations in reserves often result from RBI interventions to stabilize the Rupee, the current buffer is sufficient to cover 10-11 months of projected imports.

Looking at the broader trend, India’s forex reserves saw a net addition of $58 billion in 2023, after a $71 billion drop in 2022. So far in 2024, reserves have already climbed by over $20 billion.

Forex reserves—mainly held in US Dollars, Euros, Japanese Yen, and Pound Sterling—serve as a crucial cushion against external economic shocks. The RBI actively manages these reserves, selling dollars to support a weakening Rupee and buying dollars when the Rupee strengthens.

With investor confidence rebounding, India's forex war chest is back in the spotlight, reinforcing the country’s resilience in global markets.

Also Read: India’s Forex Reserves Rise by $305 Million, Total Hits $654.27 Billion