India's foreign exchange reserves rose by $266 million to $316.763 billion in the week ended September 16, according to Reserve Bank of India's ‘Weekly Statistical Supplement'.
This rise in reserves, which is mainly on account of change in currency valuation, follows a huge decline in reserves in the previous week.
In the previous week ended September 9, India's foreign exchange reserves fell by $4.29 billion to $316.497 billion.
The reserves rose due to an increase of $202 million in the country's foreign currency assets to $280.903 billion.
Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as the euro, sterling and yen held in reserves.
In the week under consideration, the euro strengthened against the dollar.
Gold was unchanged at $28.319 billion. SDRs declined by $2 million to $4.549 billion. India's reserve position in the IMF rose by $62 million to $2.992 billion.
After a sharp fall this week, when it almost touched levels of 50 against the dollar, the rupee is likely to trade between 49.30 and 49.70/90, next week.
There would be pressure on the rupee due to pressure of half-yearly closing and settlement of import bills.
Starting October the rupee could be back to levels of 47, said the treasury head of a public sector bank.