Forex reserves up by $631 mn

The country’s foreign exchange reserves increased by $631 million to $253.09 billion during the week ended April 24, mainly on account of revaluation of currencies.

According to the data released by the Reserve Bank of India (RBI), foreign currency assets alone went up by $624 million to $242.53 billion at the end of April 24, 2009.

Foreign currency assets include the effect of appreciation or depreciation of the euro, the sterling and the yen held in the forex reserves, but not the $250 million invested in foreign currency-denominated bonds issued by the India Infrastructure Finance Company (UK).

In rupee terms, the forex reserves increased by Rs 8,733 crore to Rs 1,264,900 crore. During the period under review, the rupee had appreciated by 1.04 per cent to 49.81 on April 24, 2009 from 50.33 on April 20, 2009 due to an inflow of foreign money into the system.

Foreign institutional investors (FII) have been net buyers in the Indian equity market for the last couple of weeks as they see the global economic situation reviving and also find stock valuations attractive at the moment.

Overseas investors bought shares worth $216 million in the Indian bourses during the week ended April 24 and $433 million during the week before that.

Gold and special drawings right remained unchanged in the reserves. While India’s reserve position at the International Monetary Fund (IMF) went up by $7 million to $983 million during the week under review.

The reserve money, which includes currency in circulation, bankers’ deposit with RBI and other deposits with the central bank, grew by 8.1 per cent on a year-on-year basis to Rs 9,60,186 crore for the week ended April 24, 2009.

Within that, currency in circulation grew 16.9 per cent on a year-on-year basis to end the week at Rs 7,14,286 crore.