Forex Reserves Rise by $2 billion
India’s foreign exchange reserves rose by almost $2 billion for the second week running as foreign portfolio investors brought in dollars to invest in Indian markets, reports Our Bureau. Foreign exchange reserves are at $313.8 billion as of May 9, up $1.97 billion over the previous week, according to data released by the RBI. Almost the entire growth in reserves comprising currencies, gold and special drawing rights — a currency with the IMF — has been because of a rise in foreign currency assets.
Foreign investors have been steadily increasing their exposure to Indian equities, more so since April, on the hope that the new government led by BJP’s Narendra Modi would be more growth oriented. Reserves have risen by almost $10 billion since April.