Rupee Strengthens as Forex Reserves Jump to $676.3 Billion
India’s foreign exchange reserves have seen a robust increase of $10.9 billion, pushing the total to $676.3 billion as of April 4, 2025. This marks the highest level in the past five months and continues a positive trend for the fifth consecutive week. The surge has provided a substantial cushion for the Indian economy amid ongoing global financial volatility.
The Reserve Bank of India attributed the sharp rise to a combination of active interventions in the foreign exchange market and valuation gains from its foreign assets. With the current reserve levels, India now holds an import cover of approximately 11 months, showcasing the strength and stability of its external sector.
During the same period, the Indian rupee appreciated by 0.3%, settling at 86.53 against the U.S. dollar. The currency’s upward movement comes at a time when global financial markets are facing renewed uncertainty, largely due to new U.S. tariff policies and recession fears that have weakened the dollar and shifted investor sentiment.
India’s currency performance is also buoyed by strong capital inflows and lower crude oil prices, offering some relief to the current account balance. The forex reserves’ growth and the rupee’s appreciation are being viewed as signs of solid economic fundamentals, supported by prudent fiscal and monetary strategies.
The Reserve Bank of India continues to closely monitor international market developments and is expected to take further calibrated measures to safeguard the rupee and maintain macroeconomic stability. The current momentum in reserves and currency strength positions India favorably to manage any future external shocks.
