The country’s foreign exchange reserves rose to an over two-year high of $636 billion in the week ended March 8, according to the latest data released by the Reserve Bank of India (RBI). The total reserves increased by $10.47 billion in the previous week, which was the highest weekly gain since July 14, 2023.

       The reserves rose on account of an increase in foreign currency assets, which grew by $8.12 billion in the week. Foreign exchange traders said the RBI heavily purchased dollars in the spot market during the week, absorbing robust inflows in both debt and equity ahead of the inclusion of government bonds in global indices.

       Click here to follow our WhatsApp channel

       “I think it is a mix of the RBI intervention and valuation,” said Upasna Bhardwaj, chief economist at Kotak Mahindra Bank. “The rupee was appreciating due to inflows; the RBI could have absorbed these inflows,” she said.

       The rupee appreciated by 0.1 per cent against the US dollar in the previous week.

       “It is due to a number of factors, like the fall in the Dollar Index during the week and RBI intervention,” said Aditya Vyas, chief economist at STCI Primary Dealer Ltd.

       The dollar index fell to around 102 at the end of the week, down from 103 at the start of the week.

       During the week, gold reserves rose by $2.3 billion to $50.72 billion, while special drawing rights (SDRs) were up by $31 million to $18.21 billion.

       The reserve position in the International Monetary Fund (IMF) increased by $19 million to $4.82 billion.

       Also Read

       Forex reserves recover after a year of decline, RBI adds $58 bn this fiscal

       India's foreign reserves jump to a five-month high of $607 billion

       Rupee touches lifetime low of 83.48 vs dollar after Fed's hawkish comments

       Foreign exchange reserves rise by $9 bn in week to 20-month high at $616 bn

       Master Direction part of Initiative for forex market risk management: Das

       FTA negotiations to continue during model code of conduct: Commerce secy

       States plan to raise record Rs 50,206 crore next week through bonds

       Govt hikes windfall tax on petroleum crude to Rs 4,900 per tonne

       Railways on track to record best-ever freight business, track laying: Govt

       92% recruiters expect new, replacement hiring in first half of 2024: Report