| Date: |
13-09-2014 |
| Subject: |
India's forex reserves fell by $1.327 billion |
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KOLKATA: India's foreign exchange reserves fell by $1.327 billion in the week to September 5, as the country's central bank sold dollars to prevent currency volatility.
There was some pressure on the Indian currency as an effect of dollar's strength globally after the US Federal Reserves said that it may withdraw monetary easing sooner than what is being anticipated. This would make US bonds more attractive and lure investors from emerging markets.
The forex reserves now stood at $317.313 billion, Reserve Bank of India said in its weekly statistical bulletin.
Governor Raghuram Rajan last week said that RBI is preparing for the withdrawal exit from low rates by the US policy makers by building "adequate level" of reserves and curbing volatility in foreign exchange market.
India's reserves now covers about eight months of import bill.
Foreign currency assets, a key component of reserves, fell by $1.029 billion to $290.364 billion. Reserves held in gold fell by $241 million to $20.933 billion.
Source : economictimes.indiatimes.com
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