New Delhi, Aug. 28 -- India's foreign exchange reserves rose sharply by USD 12.42 billion in the week ended August 21, reaching USD 729.33 billion, according to the latest data released by the Reserve Bank of India (RBI). The surge was driven primarily by a rise in foreign currency assets, while the country's gold reserves also recorded a strong weekly gain.

The USD 12.42-billion weekly increase was primarily driven by sustained foreign-currency inflows following the RBI's June measures to attract overseas deposits and foreign-currency borrowings, with the central bank accumulating part of those inflows in its reserves.

In rupee terms, the country's total foreign exchange reserves stood at Rs 69.81 lakh crore as of August 21. The reserv...