Forex reserves at a three-month high; $11 billion added in a week

Reserves rise for 4th straight week on revaluation, likely RBI dollar purchases

The Reserve Bank of India’s foreign exchange reserves rose $11.02 billion to $561.16 billion in the week ended December 2, marking their highest levels since August 26.

The sharp increase in the foreign exchange reserves was primarily on account of a jump in the RBI’s foreign currency assets, which climbed $9.7 billion to $496.98 billion in the previous week, latest data showed.

The data marks the fourth consecutive week in which the RBI’s reserves have risen. As on November 4, the reserves were at $530 billion. The large increase in reserves comes amid a steep decline in the dollar index.