Friday’s RBI statistics supplement revealed that India’s foreign exchange reserves (INFXR=ECI) climbed for a third week to $599.53 billion, their highest level since early June.
$3.55 billion more than last week. Reserves rose $11.7 billion in two weeks.
The central bank intervenes in spot and futures markets to stop rupee runs. Valuation fluctuations also affect FX reserves.
REUTERS REPORTED THAT the RBI’s repeated intervention to shore up reserves tests numerous foreign banks’ positive rupee view earlier this week, citing treasury officials and analysts.
The currency lost 0.4% in the foreign reserves week due to dollar index strength. Local units traded between 81.6900 and 82.2250.
This week, the rupee sank 0.6%—its worst drop in two months. Friday’s exchange rate was 82.66 cents.
