Forex reserves shrink $375 mn

Agencies
Mumbai, Mar 6: 
Foreign exchange reserve dipped $375 million during the week ended February 26 to touch $278.4 billion. This was partly on account of revaluation of non-dollar assets and partly on account of dip in the value of gold in reserves.
According to the latest data released by RBI, both foreign currency assets as well as value of gold in reserves dipped $212 million and $136 million, respectively. While SDR (special drawing rights, the reserve currency with IMF) rose $26 million and $7 million, respectively.
With gold prices dipping in the international market in February, the value of gold in reserves, which is revalued every month, depending on the variation at the London Bullion Exchange, also dipped. Moreover, the impact of variation in gold prices is more significant now after RBI increased its gold holdings, following a purchase of $200 tonnes of gold from IMF in November last year.
The dip in foreign currency assets during the week could be largely due to the dollar making gains against the euro, resulting in revaluation of non-dollar assets such as yen, euro and the sterling pound, expressed in dollars , pointed a treasury official at a public sector bank.