India’s forex reserves hit over 3-month high, rise for 4th straight week

India's foreign exchange reserves rose for the fourth consecutive week to an over three-month high of $561.16 billion in the week through December 2 as per the Reserve Bank of India's (RBI) statistical supplement updated on Friday.

India's forex reserves for the week ended November 25 stood at $550.14 billion.

Overall, they have declined from $632.7 billion at the beginning of this year, as the RBI has sold a portion of the reserves to ease volatility in the currency markets.

Reserve Bank Governor Shaktikanta Das on Wednesday said in the wake of appreciating US dollar, the movement of the rupee has remained least disruptive as compared to its peers, and the size of foreign exchange reserve is comfortable.

On a financial year basis (from April to October 2022), the Rupee has appreciated by 3.2 per cent in real terms, even as several major currencies have depreciated, he said while announcing the latest set of bi-monthly monetary policy.

"The story of the rupee has been one of India's resilience and stability," the Governor said while pointing out that the appreciation of the US dollar this year, which precipitated large-scale depreciation of all major global currencies including the Indian rupee, has drawn wide attention.

He also said the size of forex reserves is comfortable and has also increased. It has gone up from USD 524.5 billion on October 21, 2022 to USD 561.2 billion as on December 2, 2022 covering around nine months of projected imports for 2022-23. (ET Online)