The Hindu Business Line : Forex reserves rise $348 m

The country's foreign exchange reserves rose for the second week in a row. According to figures from Reserve Bank of India for the week ended July 7, it increased by a modest $348 million to touch $163.260 billion due to good inflows into the equity market and a steady euro.

Forex reserves

In the previous week, forex reserves increased by $952 million to touch $162.912 billion. As per RBI figures, foreign currency assets increased by $347 million to touch $156.315 billion. Foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of currencies such as euro, sterling and yen. The total FII inflow into the domestic equity market was $133.2 million.

Euro steady

The euro was steady and traded between $1.2768 and $1.2776 against the dollar. "During that week, good inflows into the stock market were seen. Revaluation of currency is also another reason, as the euro gained against the dollar," said the chief of treasury with a private bank.

Gold was unchanged at $ 6.180 billion for the week under consideration. The country's reserve position in the IMF increased by $1 million to touch $765 million.

The rupee could be range-bound between 46.25 and 46.10 next week. The situation in West Asia and oil prices, which are currently above $ 75, are very important factors. If the West Asia tensions continue, rupee could weaken further, said the bank official.