India’s foreign exchange reserves hit record high at $648.70bn

MUMBAI: India’s foreign exchange reserves rose for a third consecutive week and hit a record high of $648.70 billion as of May 17, data from the central bank showed on Friday.

The reserves rose by $4.55 billion in that week, the biggest jump in two months. They were up by a total of $6.23 billion in the previous two weeks.

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.

The RBI is changing the way it seeks to limit rupee’s volatility with the use of non-deliverable forwards now overtaking spot market interventions, which draw heavily on foreign exchange reserves, sources said.