| Date: |
18-04-2015 |
| Subject: |
Forex reserves fall from record highs |
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KOLKATA: India's foreign exchange reserves fall by $2.593 billion in the week to April 10, snapping a consecutive three-week rise.
The reserves stood at $340.413 billion, Reserve Bank of India said in its weekly statistical report released Friday.
Forex dealers said that reserves fell partly because RBI sold dollars to lend support to rupee as the dollar gained globally, and partly because of the valuation changes.
The rupee was under pressure in the reporting week due to dollar's global strength and closed at 62.39 a dollar on April 10, marginally week compared with the preceding week's 62.09/dollar. The local currency closed this Friday at 62.35 a dollar.
RBI added $7.3 billion in the forex coffer in the three weeks to April 3.
In the week under review, foreign currency assets fell $2.511 billion to $316.132 billion. Foreign currency assets constitute the bulk of the reserves and reflect the change in the value of reserves held in other global currencies, including the euro, pound and yen due to exchange rate movements. Gold reserves remained static at $19.038 billion.
Dealers expect RBI to be back in building reserves again from the next week as dollar inflows may escalate following Moody's upgrade of India's 'Baa3' rating outlook to 'positive' from 'stable'.
Source : economictimes.indiatimes.com
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