Reserves rose to $572 billion, the highest since early August last year. The number is higher than the earlier week – ended January 6 – at $561.58 billion. India’s reserves hit a more-than-two-year low of $524.52 billion in October 2022.
The rupee marked its best trading week in two months in the week ended January 13 as it appreciated sharply on breaking out of a tight range.
The RBI has intervened occasionally in the spot and forwards market to protect the rupee, while traders have cited instances of state-run banks purchasing dollars likely on behalf of the central bank.
The central bank has, in the past, said that changes in reserves also stem from valuation gains or losses.
It continued to gain, albeit at a slower pace, in the current week ending January 20.
The country’s reserve position with the IMF was also up by $86 million to $5.227 billion in the reporting week, the apex bank data showed.
