The country's foreign exchange reserves rose in the week ended December 6 by $4.41 billion to $ 295.71 billion, show Reserve Bank of India data released on Friday. This is close to the level last seen in April 26 at $ 296.37 billion.
Foreign currency assets, a key component of reserves, rose $ 5.02 billion to $268.76 billion. However, gold reserves for the week dropped $ 624.2 million to $20.60 billion. For the week under review, the Special Drawing Rights (SDRs) rose $8.9 million to $4.44 billion, while India's reserve position with the International Monetary Fund was up $ 3.8 million to $ 1.91 billion.
Also, the rupee weakened and breached the Rs 62-mark due to a rise in Consumer Price Index inflation for November, raising concerns of a further repo rate hike. Rate hike concerns also resulted in government bond yields rising.
The rupee ended at Rs 62.13 a dollar compared with previous close of Rs 61.83 to a dollar.
The rupee had opened at Rs 62.11 and during intra-day trades touched a low of Rs 62.28 to a dollar.
The yield on the 10-year benchmark government bond ended at 8.91 per cent compared with previous close of 8.85 per cent.
