India further cuts US govt securities exposure to $117 bn

For the second-straight month, India trimmed its holdings of American government securities to $117.2 billion in June.

Neighbouring China, which is the largest holder of such securities, too cut down its exposure to $1.241 trillion during the same period from $1.244 trillion in May.

Latest data from the US Treasury Department showed that India's holdings fell to $117.2 billion in June from $118 billion in the previous month.

At the end of April, India held American government bonds worth $121.6 billion.

Among the BRIC nations, India has the third largest holding of these securities after China and Brazil, whose exposure stood at $251.6 billion in June.

During the same time, Russia's holding touched $90.9 billion.

The second largest holder of US government securities is Japan whose exposure rose to $1.148 trillion at June end.

In May, the same stood at $1.133 trillion.

"Foreign residents increased their holdings of long-term US securities in June; net purchases were $7.6 billion. Net purchases by private foreign investors were $36 billion, while net sales by foreign official institutions were $28.4 billion," the Treasury Department said last week.

Overall, net foreign sales of long-term securities are estimated to have been $38.9 billion in June, it had said in a release.

In the three months ended June, American economy expanded 1.2 per cent whereas in the first quarter real GDP rose 0.8 per cent.