BY , ET BUREAU | UPDATED: JUL 07, 2017, 07.26 PM IST
MUMBAI: India’s foreign exchange reserves rose $4billion to reach a record high of $386.5 billion for the week ended June 30, said the Reserve Bank of India on Friday.
This comes on the back of a continuing rise in forex reserves as the RBI is reported to be mopping up dollar reserves, utilising the suitable market conditions.
“Inflows had been very strong throughout the month of June which might be reflecting in the strong gain in foreign exchange reserves,” said Harihar Krishnamoorthy, head fixed income currency and commodities at FirstRand Bank. “Also the jump could be attributed to Euro and Sterling going up causing revaluation of the reserves held by the central bank as well.”
While foreign inflows have been tepid in the first week of July, backed by few strong initial public offerings in June inflows showed very strong numbers. June saw inflows to the tune of Rs 29,302 crore while July showed an outflow of Rs 500 crore in the first week.
Currency trader with a private bank also said that with the Rupee weakening slightly exporters could have taken the opportunity to buy forward contracts. The major reason for the sudden jump is still expected to be revaluation of reserves.
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