India's forex reserves rise to a 10-month high of $588.78 billion

India's foreign exchange reserves rose to a 10-month high of $588.78 billion for the week ended April 28, the Reserve Bank of India's (RBI) statistical supplement showed on Friday.

That is an increase of $4.5 billion from the previous week.

The central bank intervenes in the spot and forwards markets to prevent runaway moves in the rupee. Changes in forex reserves also stem from valuation gains or losses.

Earlier this week, Reuters reported, citing traders, that the RBI was likely buying dollars via public sector banks to ensure that the rupee remained in a narrow range.

For the week to which the forex reserves data pertains, the rupee had ended 0.3% higher against the U.S. dollar and traded in a range of 81.61 to 82.10. The local unit had hit a three-month high of 81.61 in intraday trades on Apr. 27.

The rupee closed at 81.80 on Thursday in a holiday-truncated week, and clocked minor weekly gains.