India’s forex reserves hit record high of $729.33 billion

India's foreign exchange reserves surged by $12.422 billion to an all-time high of $729.328 billion in the week ended August 21, according to Reserve Bank of India data. The previous record of $728.494 billion was set in February. Foreign currency assets rose by $9.482 billion to $591.333 billion, while gold reserves climbed by $2.801 billion to $114.218 billion, the RBI said.

The central bank has now reported eight consecutive weeks of increases, adding about $63 billion. The Times of India reports that the RBI received nearly $73 billion under schemes launched in June to attract overseas dollar inflows, including about $65 billion from non-resident Indian deposits. Times Now notes that earlier in June, the RBI had unveiled measures including discounted hedging facilities for state-run firms and banks.

The Times of India quotes IDFC First Bank's chief economist saying the rise combines RBI dollar purchases and revaluation gains, and reports bankers saying RBI interventions to support the rupee offset some inflows. The central bank brought forward the closure of its deposit hedging facility to end-August.