India’s forex reserves rise by $6.3 billion to $696.99 billion as gold holdings surge

India’s foreign exchange reserves jumped by $6.295 billion to $696.988 billion during the week ended May 8, helped largely by a sharp rise in gold reserves, PTI reported citing Reserve Bank data released on Friday.The overall forex kitty had declined by $7.794 billion to $690.693 billion in the previous reporting week.India’s reserves had touched an all-time high of $728.494 billion in the week ended February 27 before coming under pressure following the onset of the Middle East conflict, which triggered sustained RBI interventions in the forex market to support the rupee.According to RBI data, foreign currency assets (FCAs), the largest component of the reserves, increased by $562 million to $552.387 billion during the reporting week.Expressed in dollar terms, FCAs 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 $5.637 billion to $120.853 billion during the week.The value of Special Drawing Rights (SDRs) increased by $84 million to $18.873 billion, while India’s reserve position with the International Monetary Fund (IMF) rose by $12 million to $4.875 billion, according to the RBI data.