India’s foreign exchange reserves posted its biggest gain in over a year, rising by $6.56 billion to move to $531.08 billion for the week ending 28 October.

This biggest weekly spike since 21 September 2021 comes on the back of gains in both foreign currency assets (FCAs) and gold reserves.

During the week ending 21 October 2022, the reserves were at $524.520 billion after dipping by $3,847 billion from the previous week. This was the lowest level since July 2020. 

India’s forex reserves have been on the slide since it peaked at around $642 billion in November 2021, with the Reserve Bank of India (RBI) intervening in the currency markets to protect the rupee. The strengthening of the US dollar to over two decades high has also led to the changes in valuation of the Indian rupee, which has depreciated almost 10% so far in this calendar year.

In the week ending 28 October, FCAs rose $5.772 billion to $470.847 billion. 

The value of gold reserves also rose to $37.762 billion, after gaining by $556 million over the previous week. SDRs stood at $17,625 billion in the week increasing by $185 million. 

On Friday, the rupee appreciated to close at 82.44 against the US dollar at the interbank forex market.