An increase gives the RBI more headroom to stabilise the rupee when it turns volatile
Mumbai: India’s foreign exchange reserves surged by $4.55 billion to touch a new lifetime high of $648.7 billion mark during the week ended May 17, according to the latest data released by the RBI on Friday.
This is the third consecutive week during which the country’s forex kitty has expanded which augurs well for the macroeconomic fundamentals of the economy as an ample supply of dollars helps to strengthen the rupee.
The country’s forex reserves had increased by $2.56 billion to $644.15 billion during the week ended May 10 and had recorded $3.66 billion rise for the week ended May 3.
India’s foreign exchange reserves had earlier touched a lifetime high of $648.562 billion in April after which they had declined for three weeks in a row by $10.6 billion as the RBI actively intervened in the market to buy dollars to stabilise the rupee.
An increase in the foreign exchange reserves gives the RBI more headroom to stabilise the rupee when it turns volatile.
