The Hindu Business Line : Forex reserves rise by $515 m

THE country's forex kitty was fortified for the fifth consecutive week to touch $119.284 billion, as reserves rose by $515 million for the week ended October 1, as per the latest RBI statistics.

In the previous week, the forex reserves were at $118.769 billion.

Analysts ascribe the increase in forex reserves to currency revaluation in the foreign currency asset basket of the RBI. Interest earned on the surplus deposits of the RBI can also be another reason for the accretion to reserves, they said.

During the week ended October 1, foreign currency assets rose by $462 million to $113.788 billion, compared to $113.326 billion in the previous week.

The gold position of the RBI went up by $52 million to $4.192 billion against $4.140 in the preceding week.

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.

During the week, foreign investors made investments worth $120.50 million in the Indian stock market according to Securities and Exchange Board of India data.

Meanwhile, funds parked by banks in the repos with the RBI ranged from Rs 20,500 crore to over Rs 26,000 crore during the week. Banks park excess funds with the RBI to enable idle funds to earn interest. The amount in repos with the RBI depicts excess liquidity in the monetary system, according to analysts.

The domestic currency appreciated in the past week to finish at 45.81/82 against the dollar. The rupee had been in a range of 45.8750 to 45.8100 for most of the week as FII investments kept it strong, dealers said.