India's Forex Reserves Rise by $1.03B to $687.26B, Driven by Gold

• India's foreign exchange reserves rose by $1.03 billion to $687.26 billion in the week ending December 5.
• The increase was primarily driven by a $1.033 billion jump in gold reserves, which reached $106.984 billion.
• India's forex kitty remains close to its all-time high of $704.89 billion, recorded in September 2024.
• The RBI stated that the reserves are sufficient to cover over 11 months of merchandise imports, highlighting a resilient external sector.

Why It Matters: Rising forex reserves strengthen India's economic stability and rupee management.