The Hindu Business Line : Forex reserves up $104 m

THE country's foreign exchange reserves have risen by $104 million to touch $118.359 billion for the week ended September 17, as per the latest RBI statistics. In the previous week, reserves had gone up by $679 million to touch $118.255 billion.

Currency analysts ascribed the lower accretion of the forex kitty this week to factors such as the slowing down of dollar inflows, coupled with the central bank supplying dollars in the market to keep the domestic currency propped up against the greenback.

During the week ended September 17, foreign currency assets increased by $103 million to $112.919 billion. Foreign currency assets expressed in dollar terms include the effect of appreciation or depreciation of non-US currencies, such as the euro, sterling and yen, held in reserves, according to the Weekly Statistical Supplement of the RBI.

Gold reserves remained steady at $4.14 billion. Special Drawing Rights remained steady at $6 million, while the Reserve Tranche Position with the International Monetary Fund increased by $1 million to $1.299 billion, as per the W.S.S. The domestic currency closed at 45.90/91 per dollar on Friday. During the week, the rupee had touched an intra-day low of up to 45.95 and also got dealt to a high of 45.8350.

"The outlook for the rupee is that it will appreciate at least in the short run. RBI is selling dollars through state-run banks to keep the rupee strong against the dollar. This is being used as a measure to stem any further surges in inflation. Since there is a lot of demand for dollars from oil companies, the rupee is expected to remain strong and supported at higher levels," said a forex dealer with a private sector bank.