The foreign exchange reserves rose $11.02 billion to $561.16 billion in the week ended December 2. This is the highest level since August 26 indicating that The Reserve Bank of India had likely started replenishing its foreign exchange reserves. The RBI had to sell dollars over the last few months to keep the exchange rate under control as dollar gained strength.
India’s foreign exchange reserves fell to $532.66 billion in the week through September 30, their lowest level since July 2020, with traders saying the RBI had likely intervened occasionally over the period to arrest the pace of currency’s fall.
Experts say the RBI would have bought dollars over the last few weeks as the dollar weakened