The reserves increased by $1.1 billion in the reported week, after rising by $5.58 billion in the prior week.
Changes in foreign currency assets are caused by the central bank’s intervention in the forex market as well as the appreciation or depreciation of foreign assets held in the reserves.
The RBI intervenes on both sides of the forex market to curb undue volatility in the rupee.
The rupee had fallen 0.9% against the U.S. dollar in the week to January 31 and hit its then-record low of 86.6525 per dollar, hurt by portfolio outflows and uncertainty around U.S. trade tariffs.
The Indian rupee and other emerging market currencies have been under pressure amid concerns that U.S. President Donald Trump’s tariff plans and sanctions on countries could disrupt global trade and stoke inflation.
The domestic unit was last quoted at 87.4750 on Friday and has declined 1% week-on-week so far.
The forex reserves also include India’s reserve tranche position in the International Monetary Fund.
Mutib Khalid is a skilled content writer and digital marketer with a knack for crafting compelling narratives and optimizing digital strategies. Excel in creating engaging content that drives results and enhances online presence. Passionate about blending creativity with data-driven approaches, Mutib Khalid helps brands connect with their audience and achieve their goals.