Hyderabad: India’s forex reserves rose by $2.81 billion to reach a life-time high of $365.49 billion in the week to July 29, helped by rise in foreign currency assets, RBI said on Friday.
In the previous week, the reserves had dropped by $664 million to $362.69 billion. Foreign currency assets (FCAs), a major component of the overall reserves, rose $2.79 billion to $341.04 billion in the reporting week, RBI data showed.
The increase in forex reserves comes in the backdrop of a foreign investment in both equities and debt hitting four-high in July.
According to depositors’ data, the net investment of FPIs stood at Rs 12,612 crore in equities in July, while it was Rs 6,845 crore in the debt market, taking the total inflow to Rs 19,457 crore ($2.89 billion).
This was the highest net inflow since March, when FPIs had pumped '21,143 crore in the stock markets. India is also enjoying the benefit of lower import cost of crude oil and gold because of cheaper oil price and poor demand for gold in the domestic market.
FCAs, expressed in dollar terms, include the effect of appreciation or depreciation of non-US currencies such as euro, pound and yen held in the reserves.
