Business: India's foreign exchange reserves soared by USD 12.588 billion, reaching a new all-time high of USD 704.885 billion for the week ending September 27, according to data released by the Reserve Bank of India (RBI) on Friday. The sharp increase in forex reserves strengthens India's ability to cushion against global economic uncertainties and provides greater stability to its currency in the face of volatile international markets, it added. 

The overall kitty had swelled by USD 2.838 billion to USD 692.296 billion in the previous reporting week. The USD 12.588 billion would be one of the highest weekly rises ever and this is the first time the reserves have crossed the USD 700 billion mark. For the week ended September 27, foreign currency assets, a major component of the reserves, increased by USD 10.468 billion to USD 616.154 billion, the data released on Friday showed.

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.

Gold reserves increased by USD 2.184 billion to USD 65.796 billion during the week, the central bank said. The Special Drawing Rights (SDRs) were up by USD 8 million to USD 18.547 billion, it said. India's reserve position with the IMF was down by USD 71 million to USD 4.387 billion in the reporting week, the apex bank data showed.

India's current account deficit widens marginally

Meanwhile, the country's current account deficit widened marginally to USD 9.7 billion or 1.1 per cent of GDP in April-June 2024, as against USD 8.9 billion or 1 per cent in the year-ago period, Reserve Bank of India said. The crucial number representing the country's external sector strength has come on the heels of a surplus of USD 4.

6 billion or 0.5 per cent of GDP recorded in the preceding January-March quarter.