Financial Daily from THE HINDU group of publications
Sunday, Oct 26, 2003
Financial Daily from THE HINDU group of publications Sunday, Oct 26, 2003 |
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Money & Banking
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Forex Forex reserves up $962 m owing to revaluation Our Bureau
Mumbai , Oct. 25 A REVALUATION in the RBI's basket of currencies has aided in augmenting the country's forex reserves by another $962 million to take the total reserves to $91.315 billion for the week ended October 17 as against $90.353 billion in the previous week. In fact, in the previous week, reserves rose by a staggering $2.615 billion, due to a variety of factors that contributed to the deepening of dollar liquidity in the market, including a substantial portion of the RIB (Resurgent India Bonds) proceeds being ploughed back into the country. During the week, foreign currency assets also increased by $962 million to touch $87.392 billion, as per the latest RBI statistics. According to the RBI's Weekly Statistical Supplement, "Foreign currency assets expressed in US dollar terms include the effect of appreciation and depreciation of non-US currencies (such as euro, sterling, yen) held in reserves''. The domestic currency ended strong at 45.32/33 per dollar on Friday amid good dollar liquidity. State-run banks were seen mopping up greenbacks, when the rupee hit an intra day high of 45.28. Forex traders expect the domestic currency to witness some amount of weakening towards the end of the month, due to bunched up demand for the greenbacks coming in from Monday onwards. "It has been a long week-end due to Diwali, and the usual month-end scramble for the dollar might be enhanced as the market was trading thin for the past few days'', said a dealer. However, the medium-term outlook for the domestic currency continued to remain strong, as the economic indicators continued to remain positive, he said. Meanwhile, according to the WSS, Special Drawing Rights were at $4 million during the week, while gold reserves remained steady at $3.919 billion.
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