NEW DELHI, Sep 13: India’s foreign exchange reserves climbed to a record $785.7 billion in the week ended September 4, strengthening the country’s external financial position amid heightened volatility in global markets.
The increase provides additional support to the economy as India faces pressure from higher crude oil prices, movements in the US dollar and changing global interest rate expectations.
The latest reserve level underlines the strength of India’s external buffers and gives policymakers greater room to manage fluctuations in the currency and global capital flows.
The rise in reserves comes at a time when overseas investors have turned more cautious toward emerging-market assets. Foreign portfolio investors have withdrawn ₹13,138 crore from Indian equities during the first half of September, citing global uncertainty and tighter financial conditions.
A strong reserve position is expected to remain an important safeguard as policymakers monitor developments in international financial markets and commodity prices.