India’s foreign exchange reserves surged by $4.84 billion to reach $702.78 billion for the week ended June 27, inching closer to their record peak, according to data released by the Reserve Bank of India (RBI) on Friday.This rise follows a dip of $1.01 billion in the previous week, when reserves had stood at $697.93 billion. The forex kitty had touched its highest-ever level of $704.88 billion in late September 2024, PTI reported.The RBI noted that foreign currency assets — the largest component of forex reserves — reflect valuation changes due to movements in currencies such as the euro, pound, and yen against the US dollar.During the latest reporting week, gold reserves fell by $1.23 billion to $84.5 billion, the data showed.Meanwhile, India’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by $158 million to $18.83 billion. The country’s reserve position with the IMF also improved, increasing by $176 million to reach $4.62 billion, according to the RBI.Forex reserves are seen as a key cushion against external shocks, including rising oil prices, currency volatility, and global financial instability. They also serve as a barometer for country’s ability to cover import obligations and intervene in the currency market when needed. RBI manages these reserves actively to ensure financial stability and maintain confidence in the external sector. The weekly forex data, published by the RBI through its statistical supplement every Friday, offers a snapshot of India’s external strength and import cover.