Forex Reserves Hit $687 Billion: India’s $392M Boost Explained

India’s forex reserves have soared to $687 billion, up $392 million from the previous week, as per the latest RBI data. This surge exemplifies the country’s adept handling of its external finances in a complex global landscape. The increment was driven by a combination of valuation gains and actual inflows. While foreign currency assets formed the core, adjustments in gold prices and IMF reserve positions added to the total. Such composition ensures a balanced portfolio against currency fluctuations. Contextually, this growth aligns with India’s narrowing trade deficit and robust capital account surplus.