Currency valuations and the authorities' active presence to contain rupee volatility likely influenced the pace of reserve accumulation, DBS Bank said in its today's report on Asian economies.

The report said despite the modest pullback, the current stock is comfortable on domestic metrics, especially with regard to the import cover (10x) and adequacy to cover short-debt external debt levels.

But the coverage falls short when compared to the total external debt position and as a percentage of Gross Domestic Product (GDP) vis-a-vis regional counterparts.

Foreign inflows into India's debt and equity markets lost momentum last year.

In the calendar year 2015, foreign equity inflows narrowed to USD 3.2 billion, a fourth of the USD 16 billion registered the year before.

Debt flows also moderated to USD 7.4 billion from a strong USD 26 billion in 2014.

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