Forex reserves rise $1.82 bn y-o-y

Foreign exchange reserves were up $1.82 billion year-on-year at $295.75 billion as on January 25, data from the Reserve Bank of India showed. Forex reserves rose $77.6 million in the week ended January 25. Reserves had dipped sharply in June-August as RBI sold dollars in big amount to slow the fall of the rupee. Since April, reserves have risen by just $1.64 billion.

RBI sold dollars worth nearly $13 billion in the foreign exchange market through spot and forward contracts between April-November.

Rupee's sharp fall to all-time low in June had prompted big dollar sales by RBI, which had dented reserves. Weakening domestic growth, high fiscal and current account deficit as well as weak global investor sentiment had dragged the currency to a low of 57.32/$ on June 22.

RBI interventions in the forex market have off late reduced considerably given the rupee's rather stable movement.

Rupee has been moving in the 53.25-54.75 band and has appreciated so far in January. The currency gained 2.8% in January. It ended at 53.20/$ on Friday. The currency has been trading near a three-month high this week as RBI's move to cut both the repo rate and the cash reserve ratio triggered hopes that dollar inflows would increase.

Foreign investors have pumped in around $3 billion into equity and debt markets in January, provisional data from Sebi show.

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