RBI added net $260 million in up to 1-year FX forwards in February
Dollar purchases pushed up foreign exchange reserves to $338.08 billion in February from $327.88 billion in January
Mumbai: The Reserve Bank of India’s net forward dollar book rose by $260 million for up to one-year maturities in February, compared with a net fall of $1.27 billion in the previous month, according to Reuters calculations based on data from the central bank’s website.
The central bank is letting maturing part of its forward dollar liabilities in February, which could have led to an overall rise in the forwards position month-on-month, dealers said.
The central bank may have also bought some fresh forwards to contain a strong rupee, which moved in a 61.55-62.47 per dollar band in February.
Dollar purchases pushed up foreign exchange reserves to $338.08 billion in February from $327.88 billion in January, dealers added.
The RBI’s net forward outstanding position for up to one year maturities was $31.8 billion as of February-end compared with $31.54 billion in January, according to the calculations.
The total short position in the up to one-year forwards market was $4.12 billion as of the end of February, little changed from $4.16 billion in January. The total long position was $35.92 billion versus $35.7 billion.
The aggregate short positions in forwards for more than one year maturities stood at $25.97 billion, the RBI data showed. Reuters
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!