Forex reserves rose $3.9 billion during the week ended July 31, on the back of inflows due to corporate borrowing and investment by FIIs. Also, the revaluation of non-dollar assets in reserves played their part in shoring up reserves in dollar terms.

According to the latest RBI data in WSS, total forex reserves, including gold and SDR rose $3930 million to touch $271.6 billion. While foreign currency assets and reserves with IMF rose $3,974 million and $85 million, the value of gold in reserves dipped $129 million.

"Inflows were seen from a variety of sources. Besides FDI and FII inflows during the week, some corporates have also brought in funds borrowed earlier," said Navin Raghuvanshi, associate V-P, Development Credit Bank.

In addition to the mop-up by the central bank, reserves were also impacted by the valuation of non-dollar assets in reserves against the dollar. Both central and state governments vacated their WMA account with RBI for yet another week. While borrowings within the limit is at the prevailing repo rate, borrowings above the agreed limit is at 2% higher than the repo rate.