Forex reserves down by $1.228 bn to $361.943 bn.

MUMBAI: India's foreign exchange reserves came down $1.2bn to around $362bn in the week ended July 8 said the Reserve Bank of India in the Weekly Statistical Report.

Over the last month due to volatility in the forex market the forex reserves have not been growing steadily. Though post Britain's referendum to exit from EU- as a knee jerk reaction Indian Rupee had shown some loss in value against the US dollar it stabilised over the next 2 weeks.

"RBI is concerned that once the FCNR(B) deposits start maturing there might be a sudden pressure on the Rupee as reserves could fall at an all-time low. So in order to steady Rupee around 66, RBI has been intervening in the currency markets causing the foreign exchange reserves outflow," said SK Ghosh, chief economist, State Bank of India.

Various sources in the market also attributed the dollar outflow to the payments that the Indian government is making towards oil dues to Iran.

As per NSDL data, foreign investors pumped in around Rs 9767 crore in both Indian equities and the debt markets over the two weeks of July.

Source : economictimes.indiatimes.com