Forex reserves up $1.09 bn; back to April level

FCAs increased by $1.07 billion to $268 billion for the week ended March 7

Foreign exchange reserves rose $1.09 billion for the week ended March 7 to $295.45 billion, back to the level seen at the start of the current financial year.

The latest Reserve bank of India (RBI) data show that for the week ended April 26, the reserve position stood at $296.37 billion.

Foreign currency assets, a key component of reserves, rose by $1.07 billion to $267.97 billion. Gold reserves remained unchanged during the week.

Foreign exchange reserves had hit a 39-month low on September 6 when it touched $274 billion. Following several steps taken by the central bank to encourage inflows, the reserves started rising.

For the week under review, the Special Drawing Rights (SDRs) rose by $12.6 million to $4.48 billion, while India's reserve position with the International Monetary Fund was up $5.7 million to $2.01 billion.

According to currency dealers due to the growing foreign exchange reserves  of RBI, India is better placed to face further tapering by the US Fed.