| Date: |
11-04-2015 |
| Subject: |
India's forex reserves rise to $343 billion |
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KOLKATA: India's foreign exchange reserves surged for the third consecutive week as overseas investors betting heavily on India growth story and pouring in dollars, prompting Reserve Bank of India to buy it from open market to keep the local currency within a tight band.
RBI added $1.628 billion in the forex coffer in the week to April 3 to take the total reserves to $343 billion.
Dollar inflows are expected to escalate in the next few weeks after rating company Moody's revised India's 'Baa3' rating outlook to 'positive' from 'stable' leading many to believe this will be followed by a rating upgrade.
"Forecasts for most emerging and developing economies are slightly worse than last year...(but) India is a growth bright spot," IMF managing director Christine Lagarde said Friday at the Atlantic Council, according to a PTI report.
The rupee closed at 62.39 a dollar, marginally week compared to last Thursday's 62.09/dollar.
India's strong economic fundamentals helped win overseas investors back despite dollar's global strength, forex dealers said.
In the week under review, foreign currency assets rose by $2.4 billion to $318.643 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 in dollar terms fell $799 million to $19.038 billion.
Source : economictimes.indiatimes.com
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