The Hindu Business Line : Forex reserves rise by $175 m

For the week ended May 27, the country's forex reserves rose by $175 million to touch $139.829 billion, according to RBI's Weekly Statistical Supplement. In the previous week, the reserves were at $139.654 billion. The reserves had fallen by $2.892 billion over the past four weeks until May 20.

During the week under review, foreign currency assets have also moved up by $181 million to touch $133.948 billion. Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies held in reserves.

Gold and special drawing rights remained unchanged at $4.443 billion and $4 million, respectively. The country's reserve tranche position in the International Monetary Fund, however, further fell by $6 million to $1.434 billion.

The euro had marginally weakened from $1.2560 on May 23 to $1.2525 on May 27. The treasury head at a PSU bank said, "In spite of the euro slightly weakening during the week in question, there has been a rise in the forex reserves. This means that there might have been an increase in foreign direct investment, external commercial borrowings or NRI inflows in foreign currency deposits."

The foreign institutional outflows, meanwhile, amounted to $169.7 million during the week in question. Dealers said the rupee, which is overvalued by 6 to 7 per cent, would remain range-bound in the coming week.

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