India's foreign exchange reserves increased by $4.37 billion to $693.32 billion in the week ending December 19, nearing a record high. This rise was primarily driven by a surge in gold reserves, which grew by $2.62 billion, and an increase in foreign currency assets by $1.64 billion. The Reserve Bank of India noted that these reserves are sufficient to cover over 11 months of merchandise imports, indicating a resilient external sector and the ability to meet financing needs.