The Hindu Business Line : Forex reserves swell by $410 m

INDIA'S forex reserves increased by $410 million to touch $118.769 billion during the week-ended September 24, 2004, against total reserves of $118.359 billion in the previous week, as per the latest RBI statistics.

Analysts ascribed the rise to a $407-million increase in foreign currency assets, coupled with a $3-million increase in the Reserve Tranche Position with the International Monetary Fund, taking the total RTP figure to $1.302 billion.

Gold Reserves remained steady at $4.140 billion while special drawing rights remained at $1 million.

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.

Meanwhile, the domestic currency ended at 45.90/92 per dollar on Friday, against its closing levels on Monday at 45.9550/9650. In fact, during the week, the domestic currency had plunged to lows of 46.1050/1150, following a significant hardening in international oil prices.

Despite this, the rupee ended stronger on positive sentiment, when point-to-point inflation for the week ended Sept 18, declined to 7.80 per cent from 7.87 per cent.

In fact, analysts are of the view, that the medium-term outlook for the rupee may still be that it will continue to appreciate, going by the significant increase in dollar inflows in the past couple of months.