Forex reserves rise $7.3 billion to $674 billion
Weekly foreign exchange reserves increased as FCNR and ECB flows picked up, boosting foreign currency assets and gold holdings.
Mateo Fernandez ·
The country's foreign exchange reserves rose $7.26 billion to $674 billion in the week ended July 3, the central bank announced on July 10. Data showed foreign currency assets increased $4.5 billion to $545.5 billion and gold reserves rose $2.6 billion to $105.2 billion. Markets are likely to view the inflows as supportive for the rupee; reaction pending.
Foreign currency assets at $545.5 billion
Officials said flows from FCNR deposits and ECB channels picked up during the week, helping lift the stockpile. The central bank's weekly statement identified both the currency assets and gold gains as contributors to the overall rise in reserves.
A larger reserve buffer can ease near-term pressure on the currency by providing scope for intervention and liquidity management, market participants noted. The composition shift toward foreign currency assets keeps liquid external buffers higher while the gold increase adds to valuation diversity in the stockpile.
Watch the next weekly reserves update due July 17 to see whether FCNR and ECB inflows persist and whether reserves continue to grow. That reading will be the immediate test for whether this week reflected a one-off inflow or the start of a sustained replenishment cycle.