New Delhi, July 11 -- India's foreign exchange reserves increased by USD 7.26 billion to USD 674.19 billion in the week ended July 4, supported by higher foreign currency assets and gold reserves, according to data released by the Reserve Bank of India (RBI).

Foreign Currency Assets Drive Reserve Growth Foreign currency assets (FCAs), the largest component of the reserves, rose by USD 4.51 billion to USD 545.58 billion. FCAs reflect the valuation impact of non-US currencies such as the euro, pound sterling and yen held in the reserve portfolio.

State Bank of India (SBI), in a research report, said the increase in foreign currency reserves indicated the RBI's efforts to rebuild its forex buffer.

Market participants said the central bank...