India’s foreign exchange reserves have continued their upward climb, crossing the $703 billion threshold in the week ending 17 April, according to the latest figures released by the Reserve Bank of India.

The reserves rose by $2.36 billion to reach $703.31 billion during the period under review. Within this total, foreign currency assets, which form the largest component of the reserves, increased by $1.48 billion to stand at $557.46 billion.

This latest increase follows a rise of $3.825 billion in the preceding week, when reserves had reached $700.946 billion. The data points to a sustained recovery trend over recent weeks.

It is worth noting that India’s Forex reserves had touched an all-time high of $728.494 billion in late February. However, subsequent weeks saw a decline as geopolitical tensions in West Asia exerted pressure on the rupee, prompting the RBI to intervene in the currency market through dollar sales.

The reserves serve as a critical buffer for the Indian economy, enabling the central bank to manage currency volatility and maintain stability in external trade.

A strong reserve position also provides the RBI with the flexibility to intervene during periods of heightened market uncertainty.

At the same time, it signals steady foreign currency inflows into the system, reinforcing confidence in India’s external sector resilience.

Agencies