The increase follows a $14.14 billion jump in the previous week, when reserves had climbed to $707 billion.
At the latest level, India’s forex reserves are about $11.6 billion below the record high of $728.49 billion reached in the week ended February 27.
Reserves had declined for several weeks following the onset of the Middle East conflict, as pressure on the rupee prompted the RBI to intervene in the foreign exchange market through dollar sales.
Foreign currency assets rise by $7.2 billion
Foreign currency assets, the largest component of India’s forex reserves, increased by $7.23 billion to $581.85 billion during the week ended August 14.
Foreign currency assets are reported in dollar terms and also reflect movements in non-dollar currencies held by the RBI, including the euro, pound and yen.
The rise in reserves also comes after the RBI and the government introduced a series of measures last month to attract foreign currency flows into India, including measures related to Foreign Currency Non-Resident Bank, or FCNR(B), deposits.
India had received $56.85 billion under the concessional swap measures as of August 13.
Gold reserves rise by $2.7 billion
The value of the RBI’s gold reserves increased by $2.68 billion during the week to $111.42 billion.
Special Drawing Rights (SDRs) declined by $5 million to $18.74 billion, while India’s reserve position with the International Monetary Fund increased by $5 million to $4.90 billion.
The latest increase leaves India’s forex reserves within about 1.6% of their February record high.
