New Delhi, Sep 19 : India's foreign exchange reserves rose by $4.69 billion to touch $702.9 billion for the week ended September 12, according to data released by the Reserve Bank of India (RBI) on Friday.

With this increase, the reserves are now less than only $2 billion away from their all-time high of $704.9 billion recorded in late September 2024.

The latest RBI data showed that foreign currency assets, which form the biggest part of the reserves, climbed by $2.5 billion to $587.04 billion.

These assets include major global currencies such as the euro, pound and yen, and their dollar value also reflects changes in exchange rates.

Gold reserves gave a strong push this week, rising by $2.1 billion to reach $92.42 billion.

The special drawing rights (SDRs) increased slightly by $32 million to $18.73 billion, while India's reserve position with the International Monetary Fund (IMF) moved up by $9 million to $4.76 billion.

Forex reserves act as a financial safety net for the country, helping the RBI intervene in the currency market when needed to control volatility in the rupee.

The central bank maintains that such interventions are not meant to fix the exchange rate at a certain level but to ensure stability in times of global uncertainty.

Reserves have been rising steadily in recent weeks. They had already crossed the $698 billion mark in the week ended September 5, following a $4.03 billion jump, after increasing by $3.51 billion in the previous week.

In the previous week also, the Central Bank's data showed that foreign currency assets (FCAs), the largest part of the reserves, went up by $540 million to $584.47 billion.

Analysts say the strong buffer close to record highs will help India cushion external shocks, support the rupee, and provide confidence to global investors, especially amid uncertain global economic conditions.

/IANS