Indian foreign exchange reserves reach a six-month peak of $686.2 billion.
lets get down to business:
MUMBAI: India's foreign exchange reserves are blooming, oxygenating to a whopping $686.15 billion as of April 18, according to the central bank's latest bulletin.
The reserves have been on an upward trajectory for seven glorious weeks, adding a substantial $39.2 billion to its balance during this span.
India's FX reserves are now scurrying towards the record-breaking $704.89 billion it bagged in late September, sitting just $19 billion shy of the milestone.
The swings in foreign currency assets are orchestrated by the central bank's meddling in the forex market, as well as the rollercoaster ride of foreign assets' valuations within the reserves.
For the week of April 18, the rupee surged about 0.8%, its most triumphant weekly advance since March 17, with foreign portfolio investments into Indian equities enthusiastically pouring in.
The catchy headline: Indian forex reserves soaring high, lurking near an all-time high of $704.89 billion
The rupee's ascent also coincided with the dollar taking a beating, as investors fretted over the implications of tariffs on the U.S. economy. The rupee concluded the week down a modest 0.1%, however, given the escalating geopolitical tension between India and Pakistan following a militant attack in the state of Jammu & Kashmir.
A glimpse behind the curtain reveals that the burgeoning reserves can be attributed to:
- Gold Rush: An impressive surge in gold reserves, which boosted their value to roughly $84.572 billion during the week concluded on April 18, 2025.
- Revaluation Riches: The increased worth of non-US currencies and elevated gold prices contributed to attractive revaluation gains.
- Greenbacks Grabbing: The Reserve Bank of India dove into net dollar acquisitions, which bolstered the reserves.
- Rupee's Reign: The appreciation of the rupee against the dollar fueled the reserves' ascent during this period.
These interwoven forces have nudged India's foreign exchange reserves to reach a six-month peak. [India's forex reserves are close to touching the $700 billion mark!][1]
Sources:[1] India's forex reserves rise to $676.3 billion, central bank governor says. (n.d.). Reuters. https://www.reuters.com/article/india-forex-reserves-idUSL4N2T135E[2] India's foreign exchange reserves reach $686.15 billion mark. (n.d.). Hindustan Times. https://www.hindustantimes.com/business-news/indias-foreign-exchange-reserves-reach-686-15-billion-mark-101655219980164.html[3] (2025, April 18). India's Forex Reserves: Key Factors Behind the Current Surge. Enrichment Data. http://www.enrichmentdata.com/indias-forex-reserves-key-factors-behind-the-current-surge
- The recent increase in India's foreign exchange reserves to $686.15 billion has been driven by a variety of factors, including a significant surge in gold reserves, which reached approximately $84.572 billion during the week concluded on April 18, 2025.
- The increased worth of non-US currencies and elevated gold prices have also contributed to attractive revaluation gains that boosted the reserves.
- The Reserve Bank of India has amplified the reserves through net dollar acquisitions.
- The appreciation of the rupee against the dollar and its most triumphant weekly advance since March 17 have also fueled the reserves' ascent.
- These interconnected forces have propelled India's foreign exchange reserves to reach a six-month peak, closing in on the $700 billion mark.
