Driven by a rise in core currency assets and gold holdings, India’s foreign exchange (FX) reserves jumped $2.68bn to touch $396.084bn in the week to January 4, the Reserve Bank of India (RBI) data showed on Friday.
Meanwhile, foreign currency assets (FCA), a major component of the overall reserves, rose $2.215bn to $370.292bn.
Reserves had touched a record high of $426.028bn in the week to April 13, 2018. Since then, the forex kitty has been fluctuating and mostly sliding.
One of the major reasons for the decline is that the central bank has been selling dollars in the market to contain rupee volatility. In the first five months of the current fiscal, the central bank has sold more than $34bn to arrest the fall of the rupee, which had sniffed at 74 to a greenback earlier this fiscal.
The value of the gold reserves increased by $465.5mn to $21.689bn in the reporting week, the RBI said.
The overall reserves had increased by $116.4mn to $393.404bn in the previous reporting week.
-With inputs from Agencies