India’s forex reserves up by $3.51 billion to $694.2 billion in week ending August 29

India’s forex reserves were up by $3.51 billion to $694.2 billion in week ending August 29, according to data released by the Reserve Bank of India (RBI) on Friday.

The reserves had earlier fallen by $4.38 billion to $690.72 billion for the week ended August 22.

For the week ended August 29, foreign currency assets (FCAs) — the largest component of the reserves — were up by $1.68 billion to $583.94 billion, the RBI data showed. In dollar terms, FCAs also reflect the impact of movements in non-US currencies such as the euro, pound and yen held in the reserves.

Gold reserves were up by $1.76 billion, standing at $86.76 billion during the reporting week. Meanwhile, SDRs in the last week were also up by $40 million to reach at $18.77 billion.

Meanwhile, India’s reserve position with the International Monetary Fund (IMF) rose by $18 million to stand at $4.74 billion, as per the data

The RBI, from time to time, intervenes in the forex market through liquidity operations — including the sale of dollars — to curb sharp volatility in the rupee. Officials emphasize that such interventions are aimed at maintaining orderly market conditions rather than targeting a specific exchange rate level or band.