Forex reserves touch fresh all-time low

By: |
April 25, 2015 12:12 AM

Forex reserves rose by $2.79 billion last week to a fresh all-time high...

Forex reserves rose by $2.79 billion last week to a fresh all-time high of $343.20 billion, data from the Reserve Bank of India showed. Forex reserves have jumped by $33.79 billion over the last one year on the back of aggressive dollar purchases by the RBI from the market. The central bank has bought a massive $82 billion between April 2014 and March 2015 from the spot dollar/rupee market, besides buying through forward contracts.

forex

RBI had been aggressively mopping up dollars to curb the rupee’s appreciation and shore up reserves. In fact, the RBI has absorbed almost all inflows into the local debt market. The RBI has maintained that it intervenes only to curb volatility in the forex market and not specifically to shore up reserves. Indeed, the central bank was seen selling dollars on Thursday to curb volatility in the dollar/rupee pair.

The rupee has depreciated 1.88% during the week, becoming the worst performing currency among Asian peers. It closed at 62.56/$ on Friday. According to currency dealers, the intervention of the RBI through dollar sales was not aggressive, indicating that the central bank perhaps wants the currency to depreciate.

For Updates Check Market News; follow us on Facebook and Twitter

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Godrej Properties Rating: Buy- Leadership position is well deserved
2Reliance Industries Rating: Buy- Tariff hike to boost Jio’s ARPUs, valuation
3Banks, companies rush to bond market to lock lower rates