India’s foreign exchange reserves rose by $1.488 billion to $695.106 billion during the week ended August 15, according to the latest data released by the Reserve Bank of India (RBI) on Friday.This comes after a sharper rise of $4.747 billion in the previous reporting week, when overall reserves had touched $693.618 billion, PTI reported.For the week under review, foreign currency assets (FCAs), the largest component of the forex kitty, rose by $1.924 billion to $585.903 billion, the data showed. Expressed in dollar terms, FCAs also reflect the impact of fluctuations in non-US currencies such as the euro, pound, and yen held in the reserves.On the other hand, gold reserves dipped by $493 million, taking the total value to $85.667 billion.The RBI said Special Drawing Rights (SDRs) with the International Monetary Fund increased by $41 million to $18.782 billion. India’s reserve position with the IMF also rose by $15 million to $4.754 billion in the reporting week.Foreign exchange reserves serve as a vital buffer against external risks such as sharp swings in oil prices, currency volatility and global financial instability. They are widely seen as an indicator of a country’s ability to meet import obligations and step in to stabilise currency markets when needed. The Reserve Bank of India manages these reserves to ensure financial stability and maintain confidence in the external sector. Its weekly statistical supplement, published every Friday, offers a snapshot of India’s forex position and the strength of its defences against external shocks.