Forex reserves surge $2.67 billion to reach $366.7 billion on equity show
MUMBAI: The foreign exchange reserves increased by $2.6 billion to reach $366.7 billion for the week ended March 17 amid a continuing rise in major equity indices in the South Asian nation.
India's currency also appreciated in tandem with swelling reserves, with the Reserve Bank of India likely to have intervened to moderate the pace of rising of the rupee against the dollar.
"The rise can be attributed to the likely maturities in the forwards market and also some spot buying from the regulator as the Rupee had appreciated consistently over the last week," said Ashutosh Khajuria, executive director, Federal Bank.
Sources say that the RBI has been defending the value of Rupee against Dollar at levels around Rs 65.60 and even before that, the regulator had intervened to maintain the level at Rs 66.40.
The stock exchanges had also rallied last week, closing at 29,648 last Friday. Foreign investors are buying into both Indian equities and debt markets.
As per data from depository NSDL, the total amount of money invested in the Indian markets stood at Rs 50,811 crore for the current year until March 24.
Foreign exchange reserves are likely to rise further as sources say that there could be accretion in the data released in the following weeks as the regulator is thought to have intervened in this week as well.
After a landslide victory of the ruling Bharatiya Janata Party in Uttar Pradesh state elections and also the latest Federal Reserve move to raise interest rates by 25 basis points to 1%, India's currency reached a 16-month high against the dollar last week, prompting intervention by the regulator.
India's currency also appreciated in tandem with swelling reserves, with the Reserve Bank of India likely to have intervened to moderate the pace of rising of the rupee against the dollar.
"The rise can be attributed to the likely maturities in the forwards market and also some spot buying from the regulator as the Rupee had appreciated consistently over the last week," said Ashutosh Khajuria, executive director, Federal Bank.
Sources say that the RBI has been defending the value of Rupee against Dollar at levels around Rs 65.60 and even before that, the regulator had intervened to maintain the level at Rs 66.40.
The stock exchanges had also rallied last week, closing at 29,648 last Friday. Foreign investors are buying into both Indian equities and debt markets.
As per data from depository NSDL, the total amount of money invested in the Indian markets stood at Rs 50,811 crore for the current year until March 24.
Foreign exchange reserves are likely to rise further as sources say that there could be accretion in the data released in the following weeks as the regulator is thought to have intervened in this week as well.
After a landslide victory of the ruling Bharatiya Janata Party in Uttar Pradesh state elections and also the latest Federal Reserve move to raise interest rates by 25 basis points to 1%, India's currency reached a 16-month high against the dollar last week, prompting intervention by the regulator.
