Mumbai: India’s foreign exchange reserves rose by $2.6 billion to a one-month high of $586.11 billion as of October 27, data from the Reserve Bank of India (RBI) showed on Friday.
The reserves had fallen by $2.4 billion in the previous week. A $5 billion dollar/rupee swap conducted by the RBI last year, where it sold dollars and bought rupees, matured on Oct. 23, leading to a reversal of the trade. The reserves data for the week reflects the impact of this maturity.
“The forex reserves this week reflect the maturity of the swap, alongside the revaluation changes,” said Gaura Sen Gupta, India economist at IDFC First Bank.
“Plus, the RBI’s spot intervention, which it has likely been quite regular, would have been accounted for.”
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.