Forex reserves touch lowest level in 3 years to reach below $280 billon

Country’s forex reserves  fell by almost $1 billion to reach the lowest level in last 3 years.  Total forex reserves $279.2 billion for the week ended July 19, Reserve Bank of India (RBI) data showed today.

Last time forex reserves were at $278.2 billion in the week ended July 2, 2010.

According to weekly statistical supplement of the central bank, fall in reserves was due sharp fall foreign currency assets which are the substantial part of reserves. FCAs dropped by almost $1 billion during the week ended July 19.

According to currency dealers this is because the central bank has been intervening in the market to arrest the fall in the rupee and fresh inflows are not coming in to compensate for the dollar sale by RBI

Country's reserve position at International Monetary Fund (IMF) increased marginally by $4.8 million to $2.16 billion while special drawing rights from IMF increased by $9.5 million to $4.3 billion.

Rupee meanwhile ended at a bit stronger today to end at Rs 59.04 against the dollar compared to yesterday’s close of 59.11.