Forex reserves up $1.8 bn to $312 bn

The increase in reserves was basically due to a hike in foreign currency assets, which grew by $1.78 billion to $302.74 billion, according to the Reserve Bank of India's weekly statistical supplement released today.

The forex reserves had dipped by $4.96 billion in the week ended June 13, 2008, after rising to a record $312.481 billion by the end of May. The forex kitty has grown by just $2.75 billion since March 2008.

The decline in reserves has been attributed to dollar sales by the central bank to keep the value of the rupee below 43 to dollar, analysts said.

RBI has been intervening in the forex market for the past couple of weeks to provide some relief to the depreciating rupee.

Crude oil prices today touched a new high of $142 a barrel. This entails higher payment for buying crude oil from the international market. Meanwhile, inflation touched its new peak in 13 years at 11.42 per cent on the wholesale price index on June 13, 2008.

The reserve position in the International Monetary Fund, which includes Reserve Tranche Position went up to $0.524 billion, RBI said.