Deputy Governor of the RBI said that the US dollar will continue to form the major chunk of Indian foreign exchange reserve.

This will happen since most of the trade done by India is denominated in this currency.

Talking to the reporters, K. C. Chakrabarty said that the Euro was not sufficient to form the component of the total reserve. And so, mojor part of it will be determined by the dollar.

As per the latest data released by the apex bank, India's total foreign exchange reserve is $276.24 billion. This includes currency assets worth $251.47 billion.

No further break-up was given. Chakrabarty also reiterated that the rise in value of dollar against the major currencies will bear an impact on Indian rupee and by no means will the Central Bank let the rupee go down.

Till today, the rupee has hit a 61/2 month low figure of $47.33. This has happened because of the withdrawals done by foreign funds and also the falling stock markets.

The BSE index has gone down by as much as 2 per cent during Friday.