Forex reserves rise $3.16 bn to $320 bn

The country's foreign exchange reserves rose $3.16 billion for the week ended December 19 to $320 billion, according to data released by Reserve Bank of India (RBI) on Friday. The reserves are now very close to the all-time high seen in the week ended September 2, 2011, at $320.79 billion. The rise was the second sharpest in 2014. The previous was in the week ended March 28. Foreign currency assets, a key component of reserves, rose $3.31 billion to $295.67 billion. The rise was despite weakening in the euro which forms a part of the reserves.

Euro had weakened against the dollar by nearly two per cent during the week. Gold reserves remained unchanged during the week at $18.99 billion.

"Between December 13-19, this type of money had not come to India. It was other way round when the rupee was under pressure. This would have been a result of RBI's forward-buying early this year. The maturity of the same would have fallen during this week," said Ashutosh Khajuria, president (treasury), Federal Bank. For the week under review, the Special drawing rights fell $29.2 million to $4.20 billion, while the country's reserve position with the International Monetary Fund was doswn $117.6 mn to $1.14 billion.