Financial Daily from THE HINDU group of publications
Saturday, Apr 01, 2006
Financial Daily from THE HINDU group of publications Saturday, Apr 01, 2006 |
|
|
|
|
|
|
|
Money & Banking
-
Forex Forex reserves surge $2.5 b Our Bureau
Mumbai , March 31 The country's foreign exchange reserves have surged by $2.5 billion due to FII inflows. The forex reserves have touched $148.662 billion for the week-ended March 24. In the previous week, the reserves had increased by $2 billion to $146.16 billion. This is the ninth consecutive week that there has been an accretion to the country's forex reserves. According to the RBI's weekly statistical supplement, foreign currency assets increased by $2.506 billion to touch $142.159 billion during the week. Foreign currency assets expressed in dollar terms include the effect of appreciation or depreciation of non-US currencies such as euro, sterling and yen.
Heavy FII inflows
According to dealers, there were heavy FII inflows during the week under consideration and RBI had been buying dollars in the forex market. "RBI has been buying greenback to infuse liquidity as well as to prevent the rupee from being overvalued. An overvalued rupee would mean that exporters don't get a competitive price," said a senior forex dealer at a private bank. The FII inflows during the week in question were $185 billion. According to the RBI release, gold and SDRs remained unchanged at $5.747 billion and $3 million, respectively. The reserve position in the IMF, however, fell by $3 million to touch $753 million. Dealers said the rupee was likely to be in range of 44.55-44.65 in the next week. "The rupee may not appreciate if central bank continues to buy dollars in the market," said a dealer.
More Stories on : Forex
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|