India's foreign exchange reserves rose for the fourth straight week, to $561.162 billion in the week through December 2, according to Reserve Bank of India's (RBI) weekly statistical supplement showed on Friday.
The RBI in the past has said changes in its reserves is a function of revaluation gains or losses, as well as market interventions.
This is the fourth consecutive week of rise in the reserves. . In the previous reporting week ended November 25, the country's forex reserves were grown by $2.9 billion at $550.14 billion. For the week ended November 11, the forex reserves had jumped by $14.72 billion in its second fastest weekly acceleration ever.
In October 2021, the country's foreign exchange had reached an all-time high of $645 billion.
Overall, they have declined from $632.7 billion at the beginning of this year, as the RBI has sold a portion of the reserves to ease volatility in the currency markets.
Foreign currency assets rose by $9.694 billion to $496.984 billion for the week ending December 2 according to the Weekly Statistical Supplement released by the RBI.
It was at $487.29 billionfor the week ending November 25.
Foreign currency assets (FCA) which is expressed in dollar terms, include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
The gold reserves increased by $1.086 billion to $41.025 billion.
The Special Drawing Rights (SDRs) were down by $164 million to $18.04 billion, the apex bank said.
The rupee has been volatile against the dollar over the last few trading sessions. In the week to Dec. 2, the Indian unit traded in a wide 80.9850 to 81.8350 range. The rupee hit a one-month low of 82.7600 against the dollar on Dec. 7.
The Indian rupee should be allowed to find its level and it was important to make an objective assessment of the moves on the currency, RBI Governor Shaktikanta Das had said on Wednesday.
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