After falling for ten consecutive weeks, India's forex reserves increased by $4.23 billion to $597.51 billion for the week ended 20 May due to a rise in core currency assets. 

For the previous reporting week ended 13 May, India’s foreign exchange reserves had declined by $2.676 billion to $593.279 billion. 

Foreign currency assets (FCAs), a major component of the overall reserves, rose by $3.825 billion to $533.378 billion in the week ending 20 May, compared to the preceding week. 

Gold reserves, the second in line after the FCAs, increased by $253 billion to $40.823 billion, as per weekly data released by the Reserve Bank of India (RBI) on Friday.

The Special Drawing Rights (SDR) with the International Monetary Fund (IMF) increased by $102 million to $18.306 billion. 

India’s reserve position with the IMF increased by 51 million to $5.002 billion in the reporting week.

Meanwhile, in its annual report for FY22, the RBI said it will explore portfolio diversification through new asset classes and fresh markets for forex reserves management. 

The central bank further stated that it had taken up diversification of reserves while adhering to the primary objectives of safety and liquidity. It also scaled up newly introduced FCA products during FY22.