Revaluation, RBI dollar buys fuelled jump in India’s forex reserves: Report

MUMBAI: The biggest jump in India’s foreign exchange reserves in more than a year was prompted by the country’s central bank buying up dollars and on account of revaluation, analysts said on Monday.
India’s foreign exchange reserves rose by $14.7 billion in the week through November 11 to $544.72, data released on Friday showed. It was the largest accretion to reserves since August last year.
“I think the RBI did some major dollar buying (in that week) and continued to buy,” said Abheek Barua, chief economist at HDFC Bank.
“Combine that with the fairly large revaluation on account of the dollar’s decline, and we have this increase in reserves.”
The reserves had dropped to their lowest level in over two years in mid-October to about $525 billion. It has since recovered, thanks to the dollar’s pullback and possible purchases by the Reserve Bank of India.
In the week ended Nov. 11,…

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