The Hindu Business Line : Forex reserves down $520 m

THE country's foreign exchange reserves have declined for the fourth consecutive week on account of currency revaluation and limited foreign institutional investor inflows.

For the week ended May 20, the country's forex reserves fell by $520 million to touch $139.654 billion, according to the RBI's Weekly Statistical Supplement. In the previous week, the reserves were at $140.174 billion. Forex reserves have fallen by $2.892 billion over four weeks ended May 20, 2005.

During the week under review, foreign currency assets moved down by $518 million to touch $133.767 billion. Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies held in reserves.

Gold and special drawing rights remained unchanged at $4.443 billion and $4 million, respectively. The country's reserve tranche position in the International Monetary Fund also fell by $2 million to $1.440 billion. There are indications that the rupee will remain range-bound next week. "The rupee is likely to move in the range of 43.45 to 43.65. Oil prices will be a concern next week," said a senior official at a private bank.

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