 "Central bank's net dollar buying drops in May")
The Reserve Bank of India (RBI)'s net dollar buying declined in May, compared to the previous month, as the central bank continued its dollar purchases more from the forwards market.
The central bank bought dollars worth $1.79 billion in May against $5.87 billion in April. In May, the central bank bought dollars worth $7.98 billion from the market and sold dollars worth $6.19 billion, according to RBI data.
"RBI's dollar purchases were more from the forwards market, so that the purchases do not lead to more liquidity in the market. Due to that the net purchases in May declined," said a senior treasury official of a private bank.
Meanwhile, the outstanding non-resident Indian (NRI) deposits in May stood at $107.42 billion compared with $105.07 billion in the previous month. However, the pace of flows declined from $2.43 billion in April-May compared with $3.03 billion the same period the previous year.
The rupee ended at 59.94 on Friday, compared with previous close of 60.21 to the dollar. The rupee had opened at 60.31.
FX reserves hit a high
Meanwhile, the forex reserves rose $614.6 million to touch $316.393 billion in the week to July 4, on account of rise in currency assets.
In the previous week, reserves had risen by $856.6 million to $315.778 billion.
With this, the reserves are close to the record high reported in late 2011 at Rs 321 billion.
Foreign currency assets (FCAs), a major constituent of the overall reserves, rose $760.6 million to $289.573 billion in the reporting week, the Reserve Bank said in its weekly statement here on Friday.
FCAs, expressed in dollar terms, include the effect of appreciation/depreciation of the non-US currencies such as the euro, pound and yen held in reserves.
The gold reserves dropped by $155.5 million to $20.634 billion in the reporting week.
The special drawing rights was up $6.9 million to $4.466 billion, and the country's reserve position with the IMF also rose $2.6 million to $1.718 billion in the period under review, the central bank said.
The central bank bought dollars worth $1.79 billion in May against $5.87 billion in April. In May, the central bank bought dollars worth $7.98 billion from the market and sold dollars worth $6.19 billion, according to RBI data.
"RBI's dollar purchases were more from the forwards market, so that the purchases do not lead to more liquidity in the market. Due to that the net purchases in May declined," said a senior treasury official of a private bank.
More From This Section
RBI's net dollar purchases for 2013-14 stood at $8.99 billion. The central bank bought dollars worth $52.39 billion while sold $43.40 billion in 2013-14.
Meanwhile, the outstanding non-resident Indian (NRI) deposits in May stood at $107.42 billion compared with $105.07 billion in the previous month. However, the pace of flows declined from $2.43 billion in April-May compared with $3.03 billion the same period the previous year.
The rupee ended at 59.94 on Friday, compared with previous close of 60.21 to the dollar. The rupee had opened at 60.31.
FX reserves hit a high
Meanwhile, the forex reserves rose $614.6 million to touch $316.393 billion in the week to July 4, on account of rise in currency assets.
In the previous week, reserves had risen by $856.6 million to $315.778 billion.
With this, the reserves are close to the record high reported in late 2011 at Rs 321 billion.
Foreign currency assets (FCAs), a major constituent of the overall reserves, rose $760.6 million to $289.573 billion in the reporting week, the Reserve Bank said in its weekly statement here on Friday.
FCAs, expressed in dollar terms, include the effect of appreciation/depreciation of the non-US currencies such as the euro, pound and yen held in reserves.
The gold reserves dropped by $155.5 million to $20.634 billion in the reporting week.
The special drawing rights was up $6.9 million to $4.466 billion, and the country's reserve position with the IMF also rose $2.6 million to $1.718 billion in the period under review, the central bank said.