The Reserve Bank of India’s (RBI’s) foreign exchange reserves surged by $10.42 billion to a five-month high of $572 billion in the week ended January 13, latest data showed.
 
The reserves were at $572.98 billion in the week ended August 5, 2022.
 
The rise in the RBI’s reserves is the sharpest since the week ended December 2, 2022. According to analysts the increase in the reserves was owing to a positive valuation impact in the face of a weaker US dollar as well as likely purchases of the American currency by the RBI.
 
For the week ended January 13, the RBI’s foreign currency assets jumped $9.1 billion to $505.52 billion, the data showed.
 
In the previous week, the US dollar index weakened sharply as data showed slowing inflation in the country, strengthening the case for the Federal Reserve to reduce the pace of its monetary tightening. The rupee gained 1.7 per cent versus the US do