Forex reserves surge by $4 billion to $655.8 billion, a record high

Mumbai: The country’s foreign exchange reserves surged to a record high of $655.8 billion on June 7, 2024, marking an increase of $4.3 billion over the week.
The increase in reserve was largely because of the rise in foreign currency assets which rose by $3.8 billion to $576.3 billion. The value of Reserve Bank of India‘s gold holdings rose by $481 million during the week to $57 billion.Dealers believe that the central bank will keep adding to the reserves if there are significant inflows this month when the inclusion of Indian bonds into the JP Morgan emerging markets index becomes effective.
This week, the central bank has been selling dollars in the market as the rupee came under pressure and touched a new low of 83.57 against the greenback. Meanwhile, among other data released by RBI, the credit deposit ratio improved marginally during the weak with the addition of deposits outpacing bank credit. tnn