Forex reserves hit record $740.8 billion, lift rupee
By the end of August, India recorded an unprecedented $740.8 billion in foreign-exchange reserves, which has significantly fortified the value of the Indian rupee against the dollar. This development enhances public sector banks' lending potential through enhanced liquidity coverage. Despite this, state-run banks are lagging behind private ones in deposit growth, facing pressures that necessitate…
India's foreign-exchange reserves reached a record high of $740.8 billion at the end of August, marking the ninth consecutive week of growth. This surge, driven by dedicated dollar-inflow programs, has bolstered global confidence in India's robust economic performance. As a result, the local currency, the rupee, has rebounded from a sluggish fiscal year 2026, gaining nearly 2.5% against the dollar to close at 94.49 on Friday, its strongest level in nearly two months.
The Reserve Bank of India (RBI) contributed to this growth by utilizing part of its forex reserves to stabilize the rupee and curb imported inflation, following its historic low of 96.96 to a dollar in May.
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