India's forex reserves hit an all-time high of $657.16 bn

India’s forex reserves jumped by $5.16 billion to hit an all-time high of $657.16 billion as of July 5, data shared by the Reserve Bank of India showed on Friday.

Previously, forex reserves dipped by $1.71 billion to $652 billion for the week ending on June 28.

According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) increased by $42.29 billion to $577.11 billion. Expressed in dollar terms, the FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves expanded by $904 million to $57.43 billion, whereas SDRs were up by $21 million to $18.04 billion.

Reserve position in the IMF was up by $4 million to $4.58 billion.

Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.