Forex reserves decline $1.2 billion to $306 billion

Foreign exchange (forex) reserves dipped $1.2 billion to $305.5 billion during the week ended August 1, largely on account of revaluation of non-dollar assets in reserves against the dollar. The Bank of India (RBI) also sold some amount of dollars during the week. Commercial banks have still to see any pick-up in loan demand though deposits continued to grow steadily.