Forex reserves dip $7.8 bn

India’s foreign exchange reserves declined $7.8 billion, the highest in last two years to touch $ 283.941 billion at the week ended October 3, 2008. The fall was attributed mainly to the Reserve Bank of India (RBI) selling dollars and revaluation of global currencies.

In rupee terms, the reserves were down by Rs 21,456 crore to Rs 13,31,166 crore. The gold in the reserve declined by $127 million in dollar terms but gained Rs 2,141 crore. Whereas, the Special Drawing Rights (SDRs) remained unchanged.

The reserve position in IMF reduced $10 million to $ 461 million. During the week under review rupee reached a five year low of 47.30 and euro fell to 1.36 against dollar.

 

In view of global turmoil in the equity markets, foreign institutional investors (FIIs) pulled out dollars in a big way and RBI also stepped in to sell dollars to meet importers demand.