India's forex reserves surged to $655.8 bn, a record high

India's foreign exchange reserves surged to a record high of $655.8 billion on June 7, 2024, marking an increase of $4.3 billion over the week.
The increase in reserve was largely because of the rise in foreign currency assets which rose by $3.8 billion to $576.3 billion. The value of RBI’s gold holdings rose by $481 million during the week to $57 billion.
Dealers believe that the RBI will keep adding to the reserves if there are significant inflows this month when the inclusion of Indian bonds into the JP Morgan emerging markets index becomes effective. This week, however, RBI has been selling dollars in the market as the rupee came under pressure and touched a new low of 83.57.
Meanwhile, among other data released by RBI, the credit deposit ratio improved marginally during the week with the addition of deposits outpacing bank credit. Bank deposits have grown 3% during FY25 to £2,108.7 billion, while bank credit has grown 2.1% to £1,678.1 billion.