Financial Daily from THE HINDU group of publications
Sunday, Feb 10, 2002
Financial Daily from THE HINDU group of publications Sunday, Feb 10, 2002 |
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Forex Money & Banking - Forex Forex reserves up $313 m Our Bureau
MUMBAI, Feb. 9 THE country's forex reserves are closing in on the $50 billion target, surging by $313 million to touch $49.565 billion for the week ended February 1, as compared to $49.252 billion in the previous week, according to figures released by the RBI. Even as the reserves continue to strengthen steadily, the Indian currency has been falling sharply over the past couple of weeks. After opening the year 2002 at 48.25, the currency has lost 46 paise as on date, to end at 48.71 on Friday, thereby registering a depreciation of around one per cent. Speculation among forex dealers that the rupee was being allowed to weaken deliberately by the apex bank, was confirmed when the RBI Governor, Dr Bimal Jalan, admitted that reserves are being fortified to cover all `liquidity at risk',. State-run banks have been mopping up dollar supplies aggressively from the market at the behest of the RBI, over the past few weeks. "While the apex bank wants to strengthen reserves to cushion any liquidity constraints arising from possible eco-political problems in the near future, the currency is being allowed to weaken as it is overvalued by 2.50 per cent according to the REER calculations'', said an analyst.
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