Forex reserves up by $1 billion to $676 billion

Mumbai: Indias foreign exchange reserves increased $1 billion to $676 billion in the week ended July 16. Foreign currency assets increased $4.5 billion to $551 billion, despite the Reserve Bank of India selling dollars in the foreign exchange market to smoothen rupees volatility.

The rupee weakened from 95.62 to 96.28 last week. The increase in foreign currency assets was countered by gold reserves, which decreased $3.5 billion to $101.7 billion.

Market participants expect the reserves to rise going ahead as inflows from the foreign currency non resident bank FCNR(B) deposits start to trickle in.