The Hindu Business Line : Forex reserves up by $1.11 b

REVALUATION in the Reserve Bank of India's basket of currencies and consistent dollar inflows into the country have once again taken the country's forex reserves up by $1.11 billion in a single week, as per the latest RBI statistics.

Last week, reserves had registered a decline of $698 million.

Total reserves are now burgeoning at $104.23 billion as on the week-ended January 23, as compared to $103.126 billion in the previous week.

In fact, foreign currency assets have finally crossed the $100-billion mark, totalling $100.19 billion as on the week ended January 23, registering a growth of $1.11 billion.

According to the Weekly Statistical Supplement of the RBI, foreign currency assets expressed in US dollar terms include the effect of appreciation and depreciation of non-US currencies such as euro, sterling, and yen held in reserves.

The rupee closed stronger on Fridayat 45.29/30 after trading in the 45.30-45.35 range during the week.

Dealers said that RBI did not intervene much in the market this week and allowed the rupee to strengthen. "Maybe they are comfortable with the rupee at these levels, but there was not much intervention to mop up dollar supplies," said a dealer

Rupee is expected to continue to strengthen next week if the dollar flows continue as expected. Meanwhile, according to the Weekly Statistical Supplement, gold reserves remained steady at $4.215 billion and special drawing rights were steady at $3 million.