Forex reserves up by $5.4 bn

The country's foreign exchange reserves increased by a massive $5.474 billion for the week ended January 11, indicating the Reserve Bank intervened in the forex market by buying dollars to check the rise of rupee.

The reserves increased to $281.729 billion from $276.255 billion a week before, according to RBI data.

Foreign Currency Assets (FCAs) increased by $5.473 billion to $272.964 billion as against $267.491 billion a week ago, as per the Reserve Bank data.

Foreign Currency Assets expressed in US dollar terms included the effect of appreciation or depreciation of other currencies such as the Euro, Pound Sterling and Yen, held in its reserves, it said.

India's reserve position in International Monetary Fund rose by $1 million to $434 million during the week.

Gold reserves and Special Drawing Rights remained static at $8.328 billion and at $3 million respectively.

The rupee has appreciated more than 12 per cent against the dollar in 2007 following massive capital inflows. The Indian currency is trading at a nine-year high against the greenback at around 39.30 to a dollar.

News Source : Samachar