India’s forex reserves increased by $4.5 billion to $690.62 billion for the week ending May 9, according to data by the Reserve Bank of India on Friday.
Previously, India’s forex reserves dropped $2.06 billion to $686.06 billion for the week ending May 2, snapping an eight-week gaining streak that had lifted reserves to a near six-month high, according to data by the Reserve Bank of India on Friday.
India’s forex kitty
Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee. The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
