According to the RBI, foreign currency assets, considered the largest component of the foreign exchange reserves, increased by $561 million to $573.12 billion in the week ended February 27.

Prime Minister of India Narendra Modi

India's Forex Reserve: Tensions in the Middle East are continuously increasing after the joint attack by Israel and the United States on Iran. IIn retaliation, Iran has targeted several countries, including Bahrain, Qatar, and Kuwait.Along with this, Iran has closed the Strait of Hormuz, an important sea route for global oil trade, through which many countries of the world import oil from the Gulf countries. This move has created a stir in the global energy market.

Foreign currency all-time high

Amid these tense circumstances, a piece of good news has emerged for India. The country's foreign exchange reserves increased by $4.88 billion to an all-time high of $728.49 billion in the week ended February 27, according to data released by the Reserve Bank of India (RBI) on Friday.

The country's total foreign exchange reserves fell by $2.11 billion to $723.60 billion in the previous week. Previously, the reserves had reached a record high of $725.72 billion in the week ended February 13.

Relief amid stress

According to the RBI, foreign currency assets, which constitute the largest component of the reserves, increased by $561 million to $573.12 billion in the week ended February 27. Expressed in dollar terms, these assets also include the effect of fluctuations in the value of other major currencies held in the reserves, such as the euro, British pound sterling, and Japanese yen.

The central bank said that the value of gold reserves increased by $4.14 billion to $131.63 billion in the week under review. Additionally, Special Drawing Rights (SDRs) increased by $26 million to $18.87 billion. According to the data, India's reserves with the International Monetary Fund (IMF) also increased by $158 million to $4.87 billion during the same period.