Business

India’s Forex Reserves Surge To $665.4 Billion; Rupee Strengthens As Trade Deficit Narrows

India’s forex reserves rose sharply by $6.6 billion to touch a five-month high of $665.4 billion for the week ending March 28, 2025, according to data released by the Reserve Bank of India (RBI) on Friday.

The RBI’s Weekly Statistical Supplement showed that the country’s gold reserves, a key part of the forex kitty, increased by $519 million to reach $77.8 billion.

This marks the fourth consecutive week of gains in India’s foreign exchange reserves, following a $4.5 billion rise to $658.8 billion in the week ended March 21.

Earlier, reserves had declined due to revaluation and RBI’s interventions to curb rupee volatility. That trend has now reversed.

In September 2024, India’s forex reserves hit a record high of $704.885 billion.

A rising foreign exchange reserve strengthens the rupee against the US dollar, which supports economic stability.

The rupee has already shown improvement alongside the recent surge in reserves.

Higher reserves signal strong economic fundamentals and give the RBI more flexibility to manage currency volatility.

The central bank can release dollars in the spot and forward markets to prevent sharp falls in the rupee.

In contrast, falling reserves limit RBI’s ability to intervene effectively in currency markets.

Meanwhile, India’s merchandise trade deficit dropped to a three-year low of $14.05 billion in February, down from $22.99 billion in January.

The Ministry of Commerce and Industry reported stable exports and falling imports.

Exports rose by 1.3 percent to $36.91 billion in February from $36.43 billion in January.

Imports declined by 16.3 percent to $50.96 billion from $59.42 billion.

The data indicates a stronger external sector despite global uncertainty driven by geopolitical tensions.

Also Read: Sensex Falls 931 Points As Trump’s Tariff Move Triggers Global Selloff

Ajaypal Choudhary

Recent Posts

PM Modi Meets Bhutan PM Tobgay At BIMSTEC Summit; Highlights Strong Bilateral Ties & Regional Cooperation

PM Narendra Modi met Bhutanese PM Tshering Tobgay on the sidelines of the 6th BIMSTEC…

47 mins ago

Jamia Students Back Waqf Amendment Bill; Call It A Step Toward Empowerment

The student group 'Shaher-E-Arzoo' expressed firm support for the Waqf Amendment Bill, calling it a…

3 hours ago

India’s Exports To The US Face Limited Impact From Tariff Hike: SBI Report

The 27% tariff hike by US President Donald Trump on Indian goods will have only…

4 hours ago

Waqf Freed From Mafia Control, New Era Of Development Begins For Muslims: MRM

Following the passage of the Waqf Amendment Bill 2024 in both Houses of Parliament, celebrations…

5 hours ago

Laxmi Singh Leads Gautam Buddha Nagar Police To Historic No 1 Rank In IGRS Across All Stations

Gautam Buddha Nagar Police, led by CP Laxmi Singh, achieved a historic feat with all…

6 hours ago

Avoid Rhetoric That Vitiates Atmosphere, Ensure Safety Of Hindus In Bangladesh: PM Modi Tells Yunus

Prime Minister Narendra Modi called on Bangladesh to bring perpetrators of atrocities against Hindus and…

7 hours ago