Forex reserves climb $3.3 bn to $280.98 bn

India’s foreign exchange reserves grew $3.32 billion in the week up to September 11, 2009, to $280.98 billion on the back of portfolio investments and revaluation of currencies.

According to the latest data released by the Reserve Bank of India (RBI), foreign currency assets grew $2.91 billion to $264.56 billion. In rupee terms, the reserves grew Rs 5,971 crore to Rs 13,63,389 crore.

The country’s gold reserves remained unchanged. Special drawing rights grew $405 million to $5.22 billion. These include $4.88 billion allocated under general allocation and special drawing rights and $340 million under special allocation by the International Monetary Fund in the last two months. The country’s reserve position in the IMF grew $19 million to $1.36 billion during the week.

“The increase is predominantly due to portfolio investment and capital-raising overseas,” said a treasury head of a public sector bank.

The rupee rose to Rs 48.49 against the dollar during the week. It was at Rs 48.89 at the end of the previous week.

During the week, foreign institutional investors invested $ 643 million into the Indian capital markets.

The reserves have grown by $29 billion since the beginning of the current financial year as FIIs have returned to the markets. In the financial year up to September 11, FIIs have pumped in $10.16 billion into the equity markets.