Country's foreign exchange reserves reach 20-month high of $615.97 billion

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Country's foreign exchange reserves reach 20-month high of $615.97 billion

Mumbai, December 22 (IANS). India's foreign exchange reserves rose for the fifth consecutive week to a 20-month high of $615.97 billion in the week ended December 15, according to data released by the RBI on Friday.

Earlier, after increasing by $ 2.82 billion to $ 606.86 billion in the week ending December 8, foreign exchange reserves increased by $ 9.11 billion in the week ending December 15.

Foreign exchange reserves rose by $6.1 billion to a four-month high of $604.04 billion in the week ended December 1.

The increase in foreign exchange reserves boosts the macroeconomic fundamentals of the economy and makes it easier for the RBI to stabilize the rupee if it becomes volatile.

RBI intervenes in the spot and futures currency markets by releasing more dollars to prevent the rupee from coming under pressure.

Any sharp decline in the country's foreign exchange reserves reduces the scope for the RBI to intervene in the market to stabilize the rupee.

–IANS

AKJ

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