Banking News

India’s forex reserves rise to $562.40 billion as of March 3

India’s foreign exchange reserves rose by $1.5 billion in the week ending March 3, breaking a four-week falling trend.

The reserves were at $562.4 billion, Reserve Bank of India data showed.

The accretion was largely on account of overseas investment inflows into Adani group of companies. American firm GQG Partners pumped in $1.9 billion into four Adani companies.

Excluding these inflows, foreign portfolio investors (FPIs) were net sellers to the tune of Rs 6544 crore in the first four days of March, NSDL data showed. In February, FPIs sold equity to the tne of Rs 2626 crore, taking the total sale in 2023 to Rs 41169 crore till March 4.

Overseas investors are likely to sell at higher levels since the US 10-year bond yield is at 4% and this is attractive risk-free investment for them, VK Vijayakumar, chief investment strategist at Geojit Financial Services had said last week.

RBI data showed that within total reserves, foreign currency assets rose $1.181 billion to $497.087 billion. Reserves held in gold rose $282 million to $42.033 billion.

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