India’s forex reserves jumped $4.549 billion to a new all-time high of $648.7 billion for the week ended May 17, according to data released by the Reserve Bank of India.
“Despite building reserves, RBI has curbed the Rupee’s fall, indicating its discomfort with a weaker currency amidst the inflationary pressure. Thus looking at the reserves standing tall, it shows RBI has enough firepower to cap the downside of the Rupee.” said CR Forex Advisors, MD Amit Pabari.
Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry, said, “It is highly appreciable that despite global headwinds, forex is at all time high levels, on the back of strategic policy reforms and vigil monetary policy. The strengthened foreign reserves, at the level of USD 648 billion, will propel India’s growth to new highs, bolstering its global standing further. India’s robust foreign exchange reserves will offer the Reserve Bank greater autonomy in managing the country’s currency in light of the geopolitical challenges and fluctuations in global commodity prices.”