The Hindu Business Line : Forex reserves dip by $806 m

THE country's foreign exchange reserves moved down by $806 million during the week ended February 4 taking the total reserves to $128.914 billion as against $129.720 billion in the previous week.

Revaluation of international currencies was the main reason for the decline in foreign exchange reserves.

Foreign currency assets during the week fell by $612 million to $123.107 billion, the Reserve Bank of India said in its weekly statistical supplement. Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as the euro, Sterling and yen held in reserves.

Gold also dropped by $192 million to $4.390 billion.

In the domestic market, the rupee closed at 43.82/83 against the dollar on February 12. The rupee weakened throughout the week on strong dollar buying. The rupee is expected to remain range-bound, dealers said.

India's reserve position in the IMF dropped by $2 million to $1.412 billion.

During the fortnight, food credit moved down by Rs 2,321 crore to Rs 41,939 crore while non-food credit grew by Rs 7,471 crore to Rs 10,04,843 crore, the WSS said.

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Forex reserves dip by $806 m