The current account balance showed net outgo (deficit) at $3.3 bn (net surplus of $2.2 bn in H1 of 2003-04).
The valuation loss in reserves stood at $0.2 bn as against a benefit of $2.1 bn in the same period last fiscal, according to data released by the Reserve Bank in Mumbai on Friday.
The capital account (net) comprising foreign investment, banking capital, short term credit, external commercial borrowings and other items recorded a rise of $10.1 bn ($11.9 bn in H1 FY-04), it said.
The major sources of accretion to forex reserves during April-September 2004 were foreign investment (39.4 per cent), external commercial borrowings (31.8 per cent) and short-term credit (30.3 per cent), it added.
Foreign investment inflows showed a lower growth of $2.6 bn ($5.1 bn). The net inflows under banking capital were down by $0.3 bn ($2.2 bn) while non-resident Indian deposits saw outflow of $1.3 bn (inflow of $2.2 bn).
Short-term credit remained at $2bn ($2 bn) and other items in capital account at $2.7 bn ($2.6 bn) were also sources of accretion.
External commerical borrowings grew by $2.1 bn ($0.2 bn), the RBI added. India's foreign exchange reserves as on December 17 stood at $130.62 bn.