Financial Daily from THE HINDU group of publications
Sunday, Jun 20, 2004
Financial Daily from THE HINDU group of publications Sunday, Jun 20, 2004 |
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Money & Banking
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Forex Forex reserves dip by $333 m Our Bureau
Mumbai , June 19 THE country's foreign exchange reserves have declined, for the second week in row, by $333 million for the week ended June 11. The foreign exchange reserves stood at $119.345 billion compared with $119.678 billion for the week ended June 4. The foreign currency assets stood at $114.072 billion against $114.403 billion for the past week. The reserve position in the IMF has changed to $1.297 billion against past week's $1.299 billion. According to forex analysts, the drop in forex reserves could be due to revaluation of currencies in the RBI's basket and outflow of dollars on account of payments made on oil import. "During the week, the trade outflow was substantial, when oil companies were aggressively mopping up dollars for import payments," said a dealer with a large private sector bank. The foreign exchange reserve position over the past four weeks has not been stable. The week ended June 4 the reserves had declined by $142 million mainly due to change in the gold position. The week before that reserves had shown a significant surge of $1.248 billion. In the week preceding the surge a drop of $56 million was registered while prior to that a mere $49 million accretion was noted in the forex kitty. For the week ended June 18, the rupee closed at a five-and-a-half month low of 45.66/68 against the dollar, driven down by serious demand and supply mismatch of dollars in the foreign exchange market. Dealers expect the domestic currency to depreciate further to levels of 45.75 to 46.00 against the greenback in the coming week.
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