India’s foreign exchange reserves are on their way to crossing their record-high levels, after increasing for the third straight time in the week ended March 8.

Reserves rose $10.47 billion during the week, recording the highest weekly increase since July 14, 2023, to touch a two-year high of $636.1 billion as of March 8, as per Reserve Bank of India data.

In the previous two weeks, reserves had cumulatively risen by $9.5 billion, of which an increase of $6.55 billion was seen in the week ended March 1, 2024. The record high for reserves stands at $645 billion, achieved in October 2021.

Foreign currency assets increased by $8.12 billion to $562.4 billion, likely due to appreciation in the rupee as well as central bank’s intervention.

RBI has been buying dollars in the spot market to absorb heavy inflows into both debt and equities, according to analysts. The rupee rose 0.1 per cent against the dollar for the reporting week.

The jump in reserves was also led by an increase in gold reserves by $2.3 billion to $50.72 billion as of March 18.

SDRs (Special drawing rights) were up $31 million to $18.21 billion. The reserve position in the International Monetary Fund (IMF) increased by $19 million to $4.82 billion.