Mumbai: India s foreign exchange reserves touched its life high during the week ended May 21 mostly on revaluation gains as the dollar weakened on Friday shedding the gains made post Fed meeting.
India s foreign exchange reserves rose $2.9 billion during the week ended May 21 to $592 billion, according to the latest data released by the Reserve Bank of India on Friday. Foreign currency assets which constitute more than 90 per cent of India s forex reserves rose $ 1.6 billion, while value of gold rose $1.2 billion.
The DXY -dollar index against a basket of currencies- lost 0.44% on May 20 and closed at 89.79, reversing most of its gains post the FOMC minutes were released the earlier day according to an economist with a private bank. This could have likely resulted in revaluation gains of non-dollar currencies in the reserves basket.