Forex reserves jump $1.68 bn to $688.94 bn

India’s foreign exchange reserves rose by $1.68 billion to $688.94 billion during the week ended December 12, data released by the Reserve Bank of India (RBI) showed on Friday. The rise was mainly supported by an increase in gold holdings and marginal gains in foreign currency assets.Foreign currency assets (FCAs), the largest component of the forex kitty, increased by $0.91 billion to $557.79 billion during the week. FCAs include the effect of appreciation or depreciation of non-US currencies such as the euro, pound and yen held in the reserves.India’s gold reserves rose sharply by $0.76 billion, taking the total gold holdings to $107.74 billion. The steady rise in gold reserves reflects the central bank’s strategy of diversifying assets amid global uncertainty.Special Drawing Rights (SDRs) with the International Monetary Fund increased slightly by $0.01 billion to $18.74 billion. Meanwhile, India’s reserve position in the IMF also rose marginally by $0.01 billion, reaching $4.69 billion.