India’s foreign exchange reserves rose by $2.703 billion to $698.192 billion during the week ended July 25, according to the Reserve Bank of India’s latest data released on Friday.This increase comes after a decline of $1.183 billion in the previous reporting week, when total reserves had slipped to $695.489 billion, PTI reported.The latest uptick was primarily driven by a $1.316 billion rise in foreign currency assets, which stood at $588.926 billion. These assets are the largest component of the forex kitty and are expressed in dollar terms, factoring in movements in other major currencies like the euro, pound and yen.Gold reserves also registered a notable jump of $1.206 billion to $85.704 billion, the RBI data showed.Further, Special Drawing Rights (SDRs) rose by $126 million to $18.809 billion, while India’s reserve position with the International Monetary Fund (IMF) increased by $55 million to $4.753 billion.Forex reserves play a key role in providing a buffer against external shocks and maintaining confidence in the economy.