India’s forex reserves rise by $2.6 billion

Mumbai: India’s foreign exchange reserves increased by $2.579 billion to $586.111 billion during the week ended October 27, the RBI said on Friday.

The country’s foreign exchange reserves had fallen by $2.36 billion to $583.53 billion during the week ended October 20.

The increase comes as a welcome relief as RBI uses the country’s forex reserves to stabilise the rupee when it turns volatile.

Any increase in the forex kitty gives the RBI more headroom to release dollars in the market and stabilise the rupee in case it goes into a free fall.

The country’s foreign exchange reserves had declined by $14.166 billion to a five-month low of $584.74 billion for the week ended October 6.