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Informist, Friday, Sep 13, 2024

NEW DELHI – India's foreign exchange reserves hit an all-time high of $689.24 bln as of Sep 6, according to data released by the central bank today. The reserves rose by $5.25 bln during the week. 

Market participants said the jump in foreign exchange reserves was primarily due to the Reserve Bank of India's active dollar purchase intervention in the domestic spot market. 

"The rise in reserves is mainly due to dollar buying by RBI following FII (foreign institutional investment) flows in equity and debt," said Dilip Parmar, currency analyst at HDFC Securities. "If RBI wasn't there, then the rupee could have been higher and not underperformed among Asian currencies on a quarter basis." 

Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, is of the view that the RBI might be buying dollars to shore up foreign exchange reserves to a targeted level of $700 bln. 

Foreign currency assets also rose by $5.11 bln to $604.14 bln as of Sep 6. Calculated in dollar terms, the foreign currency assets include the impact of appreciation or depreciation of non-US units like the euro, pound and yen held in foreign exchange reserves.  End

US$1 = 83.89 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Pratiksha

Edited by Avishek Dutta

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