After witnessing a decline in the previous week, India's foreign exchange reserves grew by $671 million to cross the $120-billion mark for the week ended July 2.

The country's foreign exchange reserves rose from $1,19,407 million to $1,20,078 million during the period under review, according to Reserve Bank of India's weekly statistical supplement released in Mumbai on Saturday.

The foreign currency assets registered a growth of $589 million at $114.718 billion.

Analysts said revaluation of the US dollar against other international currencies and fresh inflows led to this growth in reserves.

RBI said gold reserves were up by $83 million to $4.057 billion, while the special drawing rights remained static at $2 million.

India's Reserve Tranche Position with the International Monetary Fund declined by $1 million to $1.301 billion, the central bank said.