India cenbank keen to further build up record high FX reserves, say sources

India's central bank will keep building its forex reserves as it seeks to build larger buffers, and strong inflows into the country's equity and debt markets give it an opportunity to do so, two sources familiar with the bank's thinking said. The Reserve Bank of India's absorption of dollar inflows will indirectly prevent a sharp appreciation of the rupee despite high growth in the economy and a positive balance of payments, analysts said. The Reserve Bank of India's (RBI) FX reserves rose to a record high of $642.49 billion as of March 15.