New Delhi, Sep 12 (IANS) India’s foreign exchange reserves increased by $4.03 billion to touch $698.26 billion for the week ending September 5, according to data released by the Reserve Bank of India (RBI) on Friday. 

This comes after reserves had already risen by $3.51 billion in the previous week, taking the total to $694.2 billion as of August 29.

The RBI data showed that foreign currency assets (FCAs), the largest part of the reserves, went up by $540 million to $584.47 billion.

These assets include currencies such as the euro, pound and yen, and their value in dollar terms also reflects changes in exchange rates.

A big boost came from gold reserves, which jumped by $3.53 billion to reach $90.29 billion during the week.

On the other hand, special drawing rights (SDRs) stood at $18.74 billion, as per the central bank’s data.

India’s reserve position with the International Monetary Fund (IMF) also inched up by $2 million to $4.75 billion.

The RBI frequently steps into the forex market to control sudden fluctuations in the rupee.

Such interventions, officials say, are not meant to fix the currency at a particular level but to ensure stability and prevent sharp volatility.

With reserves inching closer to the $700 billion mark, analysts believe the strong buffer will help India manage external shocks and provide confidence to global investors in uncertain times.

Meanwhile, foreign currency assets, a major component of the reserves, for the week ended August 29, was increased by $1.69 billion to $583.94 billion.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves.

For the week ended August 29, the gold component of the forex reserves was also increased by $1.77 billion to $86.77 billion.