| Date: |
06-02-2016 |
| Subject: |
Dollar inflow raises forex reserves by $1.6 billion |
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KOLKATA: The Reserve Bank of India said foreign exchange reserves rose by $1.590 billion to $349.152 billion in the week ended January 29. This was despite the rupee coming under pressure along with other currencies.
Experts said dollar inflows during the reporting week may have been higher than outflows, leading to the increase. RBI doesn't give reasons for the rise or fall of reserves. The rupee closed at 67.60 to the dollar on Friday.
The rupee crossed the 68 per dollar level on January 20 amid fears of a slowdown in China against a broader global slump. This currency level was last seen in 2013 when markets were in turmoil worldwide over talk of the US Federal Reserve withdrawing its quantitative easing programme.
Reserves dipped by about $5 billion between December 25 and January 15 as RBI was seen intervening to stabilise the slide in the local currency. India is now in a much better position than it was then.
"There is no crisis as the country has a much higher level of reserves than what it had two-three years back," said Lakshmi Iyer, chief investment officer for debt at Kotak Mahindra Mutual Fund. She said that the fundamental strength of the economy would attract long-term foreign investment flows.
Source : economictimes.indiatimes.com
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