The Hindu Business Line : Forex reserves up $297 m, near $85 b

THE country's forex reserves have gone up by $297million to touch $84.997 billion for the week ended August 8, 2003, following a revaluation of the RBI's basket of currencies.

Reserves had taken a dip of $204 million in the previous week. The revaluation has been demonstrated by a corresponding increase of $297 million in RBI's foreign currency assets, taking the total assets to $81.364 billion.

According to forex dealers, dollar inflows during this period were regular but not extraordinary. One dealer said, "In the previous weeks we saw a lot of inflows, in part due to Infosys's ADR proceeds coming in. At this point, there was substantial RBI intervention in the market, in terms of sucking out surplus dollars. This in turn was getting reflected in a substantial jump in the reserves each week".

"Now that rupee is appreciating seemingly unabated and there is not much that RBI seems to be doing to prevent it, it remains to be seen what kind of growth in reserves will there be on a weekly basis. Of course, it also depends on the kind of inflows," the dealer said.

Meanwhile, the domestic currency ended the week at 45.91 against the dollar on Thursday. According to the weekly statistical supplement of the RBI, gold reserves remained steady at $3.628 billion and Special Drawing Rights remained at $5 million.

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