The Hindu Business Line : Forex reserves up $924 m

Analysts ascribe the accretion in reserves to revaluation of currencies in the RBI's basket of currencies and foreign investment inflows into the country.

Foreign currency assets swelled by $915 million to $124.666 billion for the week ended December 17.

According to the RBI, 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.

The Gold and Special Drawing Rights position remained unchanged while the reserves position in the IMF grew by $9 million to $1.410 billion.

Although forex reserves went up in dollar terms they dipped by Rs 3,190 crore in rupee terms.

Outstanding amount in the repos for the week ended December 17 ranged between Rs 205 crore and Rs 8,515 crore. This outstanding amount depicts absorption of liquidity by RBI through the reverse repo auctions, the RBI said. The central bank had injected Rs 1,500 crore in the system through a sole bid during the week.

Last week the domestic currency continued to make handsome gains to touch a peak level of 43.76 against the dollar on December 21. In a thin volume foreign exchange market, the rupee strengthened to end the week at 43.78/79 per dollar, as the greenback lost ground overseas and foreign inflows continued, albeit at a slower pace. Gilt prices steadily firmed up during the week, gaining on account of expectation of a fall in inflation and absence of any negative factors, dealers said.