Forex Reserves @ $398 b

India's forex reserves inched closer to $400 billion, underpinned by robust overseas inflows into local equities and bonds, and a rare enhancement in the central bank's bullion holdings. Data from the central bank showed that gold reserves climbed almost $750 million to reach $20.6 billion as on September 1. Total forex reserves stood at $398 billion.

Bankers say accumulation of gold as reserves by the central bank is demonstrative of a conservative policy stance as bullion is also considered a safe haven, much like the US dollar. The last time there was a movement in gold reserves was in the first week of June when it had fallen slightly by $343 million, which was majorly due to revaluation of gold.

Separately, robust inflows of foreign currency into Indian equity and debt markets would have also helped the central bank shore up its reserves.

According to data shared by NSDL, foreign investors invested a net Rs.956 crore in the month of August, taking their total net purchases for the year to Rs.1.7 lakh crore as of the second week of September.

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