India’s foreign exchange reserves climbed to a record high last week even as the central bank intervened to protect the rupee amid a slump after surprising election results.

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The stockpile rose $4.3 billion to $655.8 billion as of June 7, data from the Reserve Bank of India released Friday showed. Indian markets were roiled in the first week of June after poll results showed Prime Minister Narendra Modi’s Bharatiya Janata Party party lost its majority in the Parliament and will have to rely on allies to form a government.

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The rupee has weakened this week, in line with other emerging markets currencies, after the US Federal Reserve indicated a slower pace of rate cuts due to sticky inflation. The local currency closed at 83.5612 a dollar Friday.

Reserves will likely get a further boost from flows tracking India’s inclusion in JPMorgan Chase & Co. emerging market bond index later this month.

The burgeoning reserves give enough ammunition to the RBI to protect the rupee amid global volatility. The central bank will intervene to ensure stability in the local currency, Bloomberg had reported earlier.

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