The latest increase pushed India above Russia to become the world’s fourth-largest holder of , behind China, Japan and Switzerland, according to Bloomberg data.
India’s reserves increased by about USD 120 billion in the current financial year. Foreign currency assets also recovered sharply from USD 541 billion in the week ended June 26.
Meanwhile, the rupee remained under pressure despite the rise in reserves. It fell for a fourth consecutive session on Friday, September 11, and closed at 95.56 against the US dollar, compared with 94.45 in the previous session.
Higher crude oil prices and rising US Treasury yields weighed on the currency. Dealers said RBI intervention helped the rupee recover part of its losses during the session. A state-owned bank dealer said, “The RBI conducted a swap along with spot intervention, which helped the rupee.”
Foreign-currency inflows may continue through some RBI facilities. External commercial borrowings and overseas foreign-currency bonds remain eligible under the program until December 31.
ALSO READ:
