MUMBAI, May 5 (Reuters) - India's foreign exchange
reserves rose to a 10-month high of $588.78 billion
for the week ended April 28, the Reserve Bank of India's (RBI)
statistical supplement showed on Friday.
That is an increase of $4.5 billion from the previous week.
The central bank intervenes in the spot and forwards markets
to prevent runaway moves in the rupee . Changes in forex
reserves also stem from valuation gains or losses.
Earlier this week, Reuters reported, citing traders, that
the RBI was likely buying dollars via public sector banks to
ensure that the rupee remained in a narrow range.
For the week to which the forex reserves data pertains, the
rupee had ended 0.3% higher against the U.S. dollar and traded
in a range of 81.61 to 82.10. The local unit had hit a
three-month high of 81.61 in intraday trades on Apr. 27.
The rupee closed at 81.80 on Thursday in a holiday-truncated
week, and clocked minor weekly gains. INR/
(Reporting by Siddhi Nayak; Editing by Janane Venkatraman)
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