Forex watch: India’s reserves rise by $3.29 billion to $696.61 billion; gold holdings lead the weekly jump

India’s foreign exchange reserves rose by $3.293 billion to $696.61 billion in the week ended December 26, data released by the Reserve Bank of India showed on Friday, PTI reported.The overall reserves had increased by $4.368 billion to $693.318 billion in the previous reporting week, indicating a continued strengthening of the country’s external buffer.According to the RBI data, foreign currency assets (FCAs) — the largest component of the forex reserves — edged up by $184 million to $559.612 billion during the week. FCAs, expressed in dollar terms, include the impact of appreciation or depreciation of non-US currencies such as the euro, pound and yen held in the reserves.Gold reserves recorded the sharpest increase, rising by $2.956 billion to $113.32 billion, the central bank said.The country’s Special Drawing Rights (SDRs) with the International Monetary Fund increased by $60 million to $18.803 billion during the reporting week, while India’s reserve position with the IMF rose by $93 million to $4.875 billion, according to the RBI data.