Mumbai

India's forex reserves rose around $2.4 billion during the week ending July 29 after falling for four consecutive weeks. The rise was seen on back of positive inflows by the foreign investors in the Indian equity market.

The country's foreign exchange reserves rose by $2.315 billion to $573.875 billion during the week ending June 29, according to the Reserve Bank of India's (RBI) weekly supplementary statistical data.

During the current financial year (up to August 4), the US dollar index (DXY) has appreciated by 8 per cent against a basket of major currencies.

In this milieu, the Indian rupee has moved in a relatively orderly fashion depreciating by 4.7 per cent against the US dollar during the same period, faring much better than several reserve currencies as well as many of its EME and Asian peers.

The depreciation of the Indian rupee is more on account of the appreciation of US dollar rather than weakness in macroeconomic fundamentals of the Indian economy.

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In July, foreign investors turned net buyers in the Indian equities nearly after 10 months, with an investment of around Rs 4,980 crore in the Indian equity markets. This comes heavy sell-off by these entities of around Rs 50,203 crore.