• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai , May 5

The country's forex reserves have surged by $3.41 billion for the week ended April 28, the largest inflow in a single week in the recent past.

According to currency traders, the spurt in the reserves was mainly on account of the Reserve Bank of India buying dollars from the open market.

The reserves rose to touch $160.67 billion in the week ended April 28, up from $157.262 billion in the previous week, according to the RBI's weekly statistical supplement. In the previous week, the reserves had gained by $2 billion. This is the 14th consecutive week that the country's reserves have posted gains.

The rise in the value of gold reserves also caused the accretion to the reserves.

Foreign currency assets increased by $2.861 billion to touch $153.598 billion during the week.

These assets, expressed in dollar terms, include the effect of appreciation or depreciation of non-US currencies such as euro, sterling, and yen.

According to the chief currency dealer at a private bank, the RBI had been buying dollars in the week under consideration.

The total FII inflow into the equity market during that week was $436.6 million.

Dealers said that the rupee is overvalued by 5.32 per cent and that the RBI has been intervening to prevent it from gaining further.

Another reason the reserves have increased is that all the major currencies had appreciated against the dollar, during the week under review. The euro gained from $1.2390 on April 24 to $1.2630 on April 28.

Related Stories:
Forex reserves rise $2 b on RBI mop-up
Improving returns from excess reserves

More Stories on : Forex | Forex

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Pre-monsoon heating on in western parts

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