Mumbai, Feb 15 (IANS): India’s foreign exchange reserves increased by $7.6 billion to stood at $638 billion as of February 7, according to latest data by the Reserve Bank of India (RBI).

This marks the third consecutive week of an increase in foreign exchange reserves, following a rise of $1.05 billion in the previous week, bringing the total to $630.607 billion as of January 31.

India’s forex reserves had reached an all-time high of $704.885 billion in September last year. The country’s foreign exchange reserves saw a significant rebound in 2023, rising by approximately $58 billion.

The upward trend has continued into 2024, with reserves increasing by over $20 billion so far which reflects sustained capital inflows and a stronger external position.

For the week ending February 7, foreign currency assets -- which form a significant portion of the total reserves -- rose by $6.422 billion at $544.106 billion, according to data released on Friday.

Gold reserves also saw a significant rise, increasing by $1.3 billion to reach $72.20 billion.

The RBI bought another 8 tonnes of gold in November 2024, as Central banks around the world continued their buying spree with a collective purchase of 53 tonnes of the precious metal during the month, according to the latest World Gold Council (WGC) report.

The total gold holdings stood at 876 tonnes, maintaining its position as the second largest buyer during the year after Poland.

Meanwhile, the central bank has also made a key policy decision by reducing the repo rate by 25 basis points to 6.25 per cent during the latest Monetary Policy Committee (MPC) meeting -- the first rate cut in five years.

The apex bank uses the forex reserves to control the volatility in the rupee which results as hot money from the stock market flows out when foreign investors sell shares.