In the reporting week ended August 24, India's forex reserves climbed higher after declining for a while as there has been witnessed an increase in currency assets. The week saw a increase in forex reserves inching higher by USD 445.4 million to USD 401.293 billion.
Earlier, the rupee's losses were being checked upon by the government as it resorted to continuous selling of dollars. But now as the threshold of RBI's intervention has been reached, the banker to the bank has slowed down its influence to curb any further free-fall of the Indian currency.
The rupee in yesterday's trade has hit another new all-time low of 71 against the dollar.
The increase in forex reserves to the week ended August 24 has increased primarily on account of increase in foreign currency assets which is the major component of India's forex. The FCA has increased by a whopping USD 386.6 million to USD 376.591 billion.
Foreign currency assets include the effect of appreciation/depreciation of the non-US currencies such as the euro, pound and the yen held in the reserves.
Gold reserves also increase by USD 35.7 million to USD 20.763 billion for the reporting week, the apex bank said. The special drawing rights with International Monetary Fund (IMF) increased by USD 8.6 million to USD 1.471 billion, while the country's reserve position with the IMF was also up by USD 14.5 million to USD 2.467 billion, the central bank said.