India's forex reserves rise $938 million to $682 billion despite RBI's $5 billion swap

Mumbai: India's foreign exchange reserves rose by a modest $938 million to $682 billion in the week ended May 29, despite a $5 billion dollar-rupee buy-sell swap conducted by the Reserve Bank of India during the period.

The limited increase suggests the central bank may have sold dollars in the spot market to curb pressure on the rupee, offsetting much of the dollars bought through the swap operation.

Foreign currency assets, the largest component of reserves, increased by $3.1 billion to $546 billion during the week. Gold reserves, however, declined by $2.1 billion to $112 billion, partly tempering the overall rise in reserves.