RBI boosts India's forex reserves to record high

India's foreign exchange reserves have reached a new milestone, soaring to a record high of $655.82 billion as of June 7, as per the latest data from the central bank. This achievement marks the second consecutive week of growth, with reserves increasing by $4.3 billion during the reporting period, following a $4.8 billion surge in the previous week.

The Reserve Bank of India (RBI) plays a pivotal role in managing the foreign exchange market to stabilize the value of the rupee and prevent excessive fluctuations. The fluctuations in foreign currency assets are influenced by the RBI's interventions and changes in the value of foreign assets held in the reserves. India's foreign exchange reserves also include its reserve tranche position in the International Monetary Fund.

During the reviewed week, the rupee traded between 82.9475 and 83.5300 against the US dollar, showing a modest 0.1% weekly increase. The week concluded with the rupee settling at 83.5550 on Friday, reflecting a slight 0.2% decline compared to the previous week.

India's foreign exchange reserves hitting a record high is a significant milestone for the country's economy. The steady growth in reserves reflects a strong position in managing external risks and ensuring stability in the currency market. This achievement showcases India's resilience and ability to navigate through global economic challenges, providing a sense of confidence in the financial markets and contributing to the overall economic growth of the nation.