Half of India forex rise from dollar fall.

What played a crucial role in the $13 billion rise in the foreign exchange reserves of the country in 2009-10? It’s the depreciation of the dollar against major currencies that helped the Reserve Bank of India show a rise in the forex kitty of the country.

According to the RBI, valuation gain during 2009-10 accounted for 50.2 per cent of the total increase in foreign exchange reserves. On balance of payments basis (i.e., excluding valuation effects), the foreign exchange reserves increased by $13,441 million during 2009-10 as against a decline of $20,080 million during 2008-09. The valuation gain, reflecting the depreciation of the US dollar against the major international currencies, accounted for $13,631 million during 2009-10 as compared with a valuation loss of $37,658 million during 2008-09, the central bank said in its latest report on forex reserves released last week.

Source : indianexpress.com