India's forex reserves rise to touch a life-time high of 507.64 US billion in the second week of June

India's forex reserves rose to touch a life-time high of 507.64 US billion in the second week of this month, helped by a significant jump in the foreign currency assets (FCA), RBI data showed.

In the previous week ended June 5, the foreign exchange reserves had crossed the half-a-trillion mark for the first time after it surged by a massive USD 8.22 billion and reached USD 501.703



billion, according to the weekly data released by the Reserve Bank of India.

 

According to economists, the increase in foreign exchange reserves is due to higher capital inflows and also due to the narrowing current account deficit as trade activities have come to a standstill due to the disruptions caused by the COVID-19 pandemic.