New Delhi: In a welcome relief for the Indian economy grappling with global uncertainties, the country’s foreign exchange reserves have climbed to an all-time high of $725.72 billion.
This impressive surge of $8.66 billion came during the week ending February 13, even as escalating tensions between the United States and Iran stirred volatility in international markets.
The Reserve Bank of India data reveals that foreign currency assets, the largest component of the reserves, rose by $3.55 billion to $573.60 billion. Gold reserves also saw a substantial increase of $4.99 billion, reaching $128.46 billion. Additionally, India’s Special Drawing Rights with the International Monetary Fund grew by $10.3 million to $18.92 billion, while the reserve position in the IMF edged up by $1.9 million to $4.734 billion.
This uptick follows a dip of $6.71 billion in the preceding week, underscoring a swift recovery. However, the rupee faced headwinds, depreciating by 31 paise to close at 90.99 against the US dollar on Friday. It opened at 90.94 in the interbank market and touched a low of 91.04, reflecting dampened investor sentiment amid the geopolitical strife.
Despite the currency pressures, domestic stock markets ended on a positive note, offering some solace. Analysts view the reserve’s growth as a buffer against external shocks, potentially irking neighbours like China and Pakistan in these turbulent times. This milestone highlights India’s resilience in safeguarding economic stability.