India's foreign exchange reserves reached $676.3 billion as of April 4, marking a five-month high, according to Reserve Bank of India (RBI) Governor Sanjay Malhotra. This marks the fifth straight week of gains, with an increase of $10.9 billion in the latest week—the largest in a month.
Over the past five weeks, the reserves have grown by a total of $37.6 billion. Governor Malhotra noted that the current level provides an import cover for approximately 11 months, underscoring the resilience of India’s external sector.
Fluctuations in foreign currency assets are influenced by RBI's market interventions and changes in the value of foreign holdings.
During the week ending April 4, the Indian rupee appreciated by 0.3% amid global currency market volatility sparked by new U.S. tariffs. The rupee traded at 86.53 per dollar on Wednesday, compared to 86.58 prior to the RBI’s policy decision.
India’s forex reserves also include its reserve tranche position at the International Monetary Fund.