MUMBAI, May 12 (Reuters) - India's foreign exchange
reserves rose for a second consecutive week to hit
an over 11-month high of $595.98 billion for the week ended May
5, the Reserve Bank of India's (RBI) statistical supplement
showed on Friday.
That is an increase of $7.2 billion from the previous week,
the highest increase since March 17. Reserves had risen by $4.5
billion in the week prior.
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 economists, that
India's forex reserves were at a comfortable level, benefiting
from the RBI's persistent intervention and likelihood of less
volatile revaluation changes.
For the week to which the forex reserves data pertains, the
rupee had ended up slightly against the U.S. dollar and traded
in a range of 81.6500 to 81.9450.
For the current week, the rupee registered its worst week in
eight, dragged down by a broader strength in the dollar index. (Reporting by Siddhi Nayak; Editing by Sohini Goswami)
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