India's forex reserves rise for second week, hit over 11-month high

India's foreign exchange reserves rose for a second consecutive week to hit an over 11-month high of $595.98 billion for the week ended May 5, the Reserve Bank of India's (RBI) statistical supplement showed on Friday.

That is an increase of $7.2 billion from the previous week, the highest increase since March 17. Reserves had risen by $4.5 billion in the week prior.

The central bank intervenes in the spot and forwards markets to prevent runaway moves in the rupee. Changes in forex reserves also stem from valuation gains or losses.

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Earlier this week, Reuters reported, citing economists, that India's forex reserves were at a comfortable level, benefiting from the RBI's persistent intervention and likelihood of less volatile revaluation changes.

For the week to which the forex reserves data pertains, the rupee had ended up slightly against the US dollar and traded in a range of 81.6500 to 81.9450.

For the current week, the rupee registered its worst week in eight, dragged down by a broader strength in the dollar index.