For the week ending on 13th October, we saw surge in foreign currency reserves by $1.155bn.
I received few queries from my close connects regarding the surge in the foreign currency reserves despite there being Net FII outflows (though very marginal) and dollar sale by the RBI into foreign exchange market amidst rising DXI (Dollar Index).
Please note that valuation of forex currency assets (FCA) remains almost the same $519.35bn Vs $519.53, however the valuation of GOLD reserves surged by $1.27bn as GOLD has risen by around 5% for the said period.
Hope this gives insights of foreign currency reserves data and clarify all doubts on surge in foreign currency reserves despite net outflow by FPIs and RBI’s intervention into forex market.
