KOLKATA: India’s foreign exchange reserves has scaled a new height of $322.14 billion replacing the previous record of $320.79 billion seen 40 months ago, on steady buying of the US dollar by the Reserve Bank of India, which could only accelerate in the days ahead with foreign funds likely to pour in billions amid improving investment and economic climate in the country.The reserves swelled by a massive $2.66 billion in the week to January 16, the biggest weekly accumulation in the past four weeks as Reserve Bank of India was seen mopping up dollars from the open market to prevent the rupee from appreciating sharply.The reserve had hit the previous peak on September 2, 2011.The central bank headed by Raghuram Rajan which in the past year has so bought about $75 billion from the markets – both spot and forwards – had to step in to temper the climb of the rupee on Friday, a day after the European Central Bank unleashed a 65 billion Euro bond purchases a month to September 2016.India’s foreign-exchange reserves rose about 10% in the past 12 months, while Brazil saw holdings decline by 0.4% to $374 billion and in Russia they fell by 28% to $339 billion, Bloomberg data shows. China’s reserves rose 0.6% to $3.8 trillion.“We continue to expect RBI governor Raghuram Rajan to recoup forex to fight possible contagion when the Fed likely raises rates in September,” said Indranil Sengupta, economist at Bank of America Merrill Lynch. “We think ECB QE should support portfolio equity inflows to Indian markets, despite Fed tightening.”The Indian Rupee has been the best performing major currency this year ahead of even Chinese Yuan, as international investors pour in money to buy Indian stocks. Last portfolio investors bought $42 billion of stocks and bonds. But the central bank which does not want to let Indian manufacturing uncompetitive with peer currencies falling versus the US dollar, has been buying up the Greenback.“Rupee has strengthened on ECB move and strong inflows expected in debt and equity markets,” said Harihar Krishnamoorthy head treasury FirstRand Bank. “We are heading towards current account surplus in this quarter adding to the strengths of rupee.”