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Foreign exchange reserves rose by $ 1.09 billion for the week ending March 7 to $ 295.45 billion, back to the level seen at the start of the financial year 2013-14. The latest Reserve bank of India (RBI) data shows that for the week ending April 26, the reserve position was 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 6 September 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.
