India's foreign exchange reserves hit three‑month high of $693 bn

India’s foreign exchange reserves rose to $692.9 billion at the end of July, marking the strongest weekly gain of about $10.5 billion since late January. The increase was driven by the Reserve Bank of India's (RBI) foreign‑currency deposit programme launched in June, which attracted $36.7 billion of non‑resident deposits through banks.

RBI Governor Sanjay Malhotra said the reserve level comfortably covers more than ten months of imports and about 90.8 % of external debt. The central bank kept its policy repo rate unchanged at 5.25 % and the stronger buffer helped the rupee appreciate 1.2 % against the U.S. dollar, closing the week at 95.38 per dollar. Analysts note that while the reserve build‑up improves the RBI’s firepower, it is unlikely to sustain further rupee gains in the near term.