MUMBAI : The Reserve Bank of India’s foreign currency reserves rose to an over 32-month high of $317.04 bln in the week ended Jul 11, on account of its consistent dollar purchases in the foreign exchange market.
The foreign exchange reserves rose by $643.20 mln in the week to Jul 11, rising for the sixth consecutive week, and were at the highest since Oct 21, 2011. Year-on-year, foreign exchange reserves were up $36.85 bln. “The RBI has been perennially been present in the market. At this point it seems like they would be comfortable with something like a $400-bln-plus kind of reserves so that last year’s case is not repeated,” said a senior treasury official at a private bank. The RBI has maintained its presence in the foreign exchange market both by reducing volatility and absorbing dollar inflows that have been hitting the market. The rupee has had a positive bias under substantial dollar inflows from equity and debt markets following Narendra Modi’s resounding win in the Lok Sabha elections. -Cogencis
