Indian foreign exchange reserves reach record high of $689.24b

India's foreign exchange reserves extended their winning run for a fourth straight week to hit a record high of $689.24 billion as of September 6, data from the central bank showed on Friday.

The reserves rose by $5.3 billion in the reporting week, after having risen by a total of $13.9 billion in the prior three weeks. The Reserve Bank of India intervenes on both sides of the foreign exchange market to prevent undue volatility in the rupee.

These interventions, via state-run banks in the spot market, helped avert a steeper decline in the local currency, which has hovered close to 84 per US dollar in recent sessions, traders said.

In the week ending September 6, the rupee fell 0.1% against the dollar and traded in a thin band. The rupee settled at 83.8875 on Friday, having strengthened nearly 0.1% week-on-week in its best weekly performance since the week ended June 25.

Changes in foreign currency assets are caused by the RBI's intervention as well as the appreciation or depreciation of foreign assets held in the reserves. Foreign exchange reserves also include India's reserve tranche position in the International Monetary Fund.