Forex reserves at $350.86 bn as RBI steps up dollar purchase

Substantial portion of rise due to rise in value of gold

India’s foreign exchange reserves rose sharply by $4.08 billion to $350.86 billion at the end of the week ended March 4, recuperating a fall of $3.6 billion in the week before.  

A substantial portion of the rise was because of an increase in the value of the gold, which saw some bull run last week. Value of gold rose $1.63 billion to $19.32 billion. Foreign currency assets rose $2.45 billion to $327.5 billion.

Taking advantage of the strength in the rupee, which closed at 67.05 a dollar on Friday, from more than 68.50 a dollar level before Budget, the Reserve Bank of India has been buying dollars aggressively to shore up its reserves.