India's forex reserves rise for third straight week to breach $550 bn-mark

India's forex reserves increased by USD 2.9 billion to USD 550.142 billion as on November 25, making it the third consecutive week of a widening in the kitty, the Reserve Bank said on Friday. In the previous week ended November 18, the overall reserves had risen by USD 2.54 billion to USD 547.252 billion.

In October 2021, the country's forex kitty had reached an all-time high of USD 645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments. Foreign currency assets (FCA), a major component of the overall reserves, increased by USD 3 billion to USD 484.289 billion during the week to November 25, according to the Weekly Statistical Supplement released by the RBI on Friday.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. The gold reserves decreased by USD 73 million to USD 39.938 billion, it said.

The Special Drawing Rights (SDRs) were down by USD 25 million to USD 17.881 billion, the apex bank said. The country's reserve position with the IMF was also down by USD 14 million to USD 5.033 billion in the week, the central bank data showed.