India’s forex reserve hit an all-time high of $645.58 billion

Increasing Forex reserves: India's foreign exchange reserves have soared to an all-time high of $645.58 billion as of March 29, marking sixth consecutive week of growth. This week alone, reserves spiked by $2.95 billion, ding to remarkable $26.5 billion accumulated over preceding five weeks. 

Driving this increase are not only RBI interventions but also fluctuating values of foreign assets, including India's reserve tranche position in International Monetary Fund. Despite India's robust economic expansion and substantial inflows into its financial markets, RBI's focus has been on bolstering reserves as a precautionary measure against potential economic downturns or verse market conditions.

Speaking on this trajectory, RBI Governor Shaktikanta Das underscored importance of fortifying nation's forex reserves as a form of financial insurance, likening it to building a sturdy umbrella to wear storms. This strategic accumulation aims to provide a resilient buffer against future uncertainties.

Amidst currency market turbulence, Indian rupee faced pressures, hitting a historic low of 83.45 against US dollar during week in review. However, by week's end, rupee managed to claw back some ground, settling at 83.2950 on Friday, reflecting a modest 0.1 per cent weekly gain.

With Reuter's Inputs