The Hindu Business Line : Forex reserves rise by $88 m

THE country's forex reserves moved up by $88 million for the week ended April 15, taking the total reserves to $141.645 billion as per the Reserve Bank of India's Weekly Statistical Supplement.

Reserve accumulation was somewhat muted due to depreciation of euro and fall in FII inflows, said analysts.

In the previous week forex reserves rose by $297 million taking the total reserves to $141.204 billion. While in the week ending April 1, reserves had declined by $1.223 billion to touch $140.907 billion.

A head dealer at a private bank said that there has been no RBI intervention in the market and FII inflows have been small. There has also been range-bound movement in currencies.

The euro has been depreciating against the dollar in this period. Since the reserves are also held in euro, this has led to a dip in the reserves. For the same period net FII inflows have been negative.

According to figures from SEBI site, FII outflows stood at $99.9 million (net purchases were at $56.5 million and net sales at $156.4 million). In the previous week too FII outflows were at $181.5 million.

The dealer also said that the reserves were unlikely to rise in the coming weeks unless the RBI intervenes to reign in the rupee.

Foreign currency assets rose by $86 million, taking the total to $135.610 billion for the same period. Gold reserves and special drawing rights remain unchanged at $4.5 billion and $5 million respectively.

India's reserve tranche position in the IMF increased by $2 million to touch $1.43 billion.

The forex market was dull last week. Dealers said the volume of trade had fallen as there were very few speculative trades in anticipation of the credit policy.

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