India’s foreign exchange reserve declined by $481 million to $254.76 billion in the week ended January 9, 2009, mainly due to revaluation of currency.
The foreign currency assets reduced by $458 million to $245.42 billion during the week, according to the Reserve Bank of India data.
During the period, the reserve position with the International Monetary Fund (IMF) dipped by $23 million to $854 million. Gold and Special Drawing Rights (SDRs) remained unchanged in the reserve.
Dealers attributed the dip in the reserve mainly due to revaluation of euro. Foreign currency assets expressed in US dollars includes the effect of appreciation or depreciation of currencies such as the euro, sterling pound and the Japanese yen held in the reserves.
In rupee term, the reserve dipped by Rs 1,614 crore to Rs 12,45,881 crore during the period. The rupee appreciated by 1.01 per cent against the dollar to 48.26 levels on January 9 from 48.75 on January 2. During the five days the foreign institutional investors (FIIs) were net sellers in the equity market to the tune of $118 million.