India's forex reserves rise by $4.3 bn to record high of $655.8 bn as of June 7

India’s forex reserves rose by $4.3 billion to a record high of $655.8 billion as of June 7, data shared by the Reserve Bank of India showed on Friday.

This surpasses the previous high of last week, when the reserves rose by $4.8 billion to $651.5 billion as of May 31.

According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) increased by$3.77 billion to $576.3 billion. Expressed in dollar terms, the FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves were up by $481 million to $56.98 billion, whereas SDRs rose by $43 million to $18.16 billion.

Reserve in the IMF surged by $10 million to $4.33 billion.

The rupee saw a weekly increase of 0.1% against the dollar during the week that pertains to foreign exchange data, trading in a range of 82.9475 to 83.5300.

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.