India's foreign exchange reserves rise to 5-month high

India's foreign exchange reserves (INFXR=ECI) rose to $572 billion in the week through Jan. 13, their highest level since early August last year, the Reserve Bank of India's (RBI) statistical supplement showed on Friday.

That is higher than the country's reserves of $561.58 billion for the week ended Jan. 6, and the more-than-two-year low of $524.52 billion hit in October 2022.

The central bank has intervened occasionally in the spot and forwards market to protect the rupee, while traders have cited instances of state-run banks purchasing dollars likely on behalf of the RBI.

The central bank has, in the past, said that changes in reserves also stem from valuation gains or losses.

The rupee USDINR marked its best trading week in two months in the week ended Jan. 13 as it appreciated sharply on breaking out of a tight range.

It continued to gain, albeit at a slower pace, in the current week ending Jan. 20.