India forex new high $327 bn |
India`s foreign exchange reserves hit a new high of US $327.88 billion in the week ended January 30, according to Reserve Bank of India data. This was a surge of $5.8 billion from the earlier week`s tally of $322 billion. Foreign investors continued to be hefty buyers of bonds and shares because of expectations for economic reforms from Prime Minister Narendra Modi`s government and the central bank`s success in reducing inflation. Foreign institutional investors poured in a $26.4 billion into Indian bonds and another $16 billion into shares in 2014.The RBI has also been keen to build up its defenses after the country suffered in 2013 the worst Rupee turmoil since a balance of payment crisis a decade ago because of dwindling reserves and a high current account deficit. The Rupee is among the best performing Asian currencies so far this ear, with a gain of around 2 per cent against the Dollar, supported by capital inflows and expectations the RBI will ease policy to encourage growth.
|
|
|
|