The Hindu Business Line : Forex reserves up $541 m

ANOTHER $ 541 million has been added to the country's forex kitty for the week ended December 26, 2003 taking the total reserves to $ 100.590 billion up from $ 100.049 billion in the previous week.

According to the latest RBI statistics, the increase has been through foreign currency assets, which increased by the same amount of $ 541 million to touch $ 96.549 billion. The gold reserves were steady at $ 4.038 billion and special drawing rights were at $ 3 million.

The increase has been due to good FII inflows and appreciation in the value of the basket of currencies. Both the euro and the pound sterling had appreciated against the dollar in that week and strong FII flows were seen, said the treasury head of a private bank.

The FII inflows are expected to continue in the coming months with the bourses racing ahead in this manner, he added. On Friday, the BSE Sensex had closed at an all-time high of 6026 points.

On the front of the rupee, the currency ended the week at 45.6950/7050 in its value against the dollar. The rupee lost 11 paise on the last half hour of the trading session on Friday as corporate demand for the dollar peaked. It has now depreciated to levels witnessed exactly a month ago.

The bullish sentiment on the rupee continues with more appreciation expected in days ahead as the dollar weakens globally and greenbacks constantly flood the Indian market, said forex dealers.

The rupee has appreciated drastically in the calendar year of 2003 by Rs 2.30 or by 4.8 per cent with unabated dollar inflow. The domestic currency started the year 2003 at levels of 47.99 in its value against the dollar.