MUMBAI: India’s foreign exchange reserves rose for a second straight week to a one-month high of $622.47 billion as of Feb. 2, data from the central bank showed on Friday.
The reserves rose by $5.74 billion in the reporting week, the biggest rise in nearly two months. Reserves had risen by $590 million in the prior week. The Reserve Bank of India (RBI) intervenes in the foreign exchange market to curb excess volatility in the rupee.
Changes in foreign currency assets are caused by the RBI’s intervention as well as the appreciation or depreciation of foreign assets held in the reserves.
Foreign exchange reserves also include India’s reserve tranche position in the International Monetary Fund.
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In the week that the foreign exchange data pertains, the rupee rose 0.2% against the dollar and traded in a range of 82.8225 and 83.1525.
The domestic currency settled at 83.0350 on Friday, down 0.1% for this week.