The Hindu Business Line : Forex reserves dip $1.2 b

THE country's foreign exchange reserves declined for the third week in a row on account of currency revaluation. For the week ended September 23, the forex reserves fell $1.2 billion to touch $143.02 billion, according to the Reserve Bank of India's Weekly Statistical Supplement. In the previous week, the forex reserves had dropped by $1.055 billion to reach $144.22 billion.

Totally, the decline in the reserves during the last three weeks has been $2.53 billion.

Foreign currency assets for the week under review fell by $1.195 billion to touch $137.048 billion. Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies (such as euro, sterling, yen) held in reserves. Gold and Special Drawing Rights were unchanged at $4.535 billion and $4 million, respectively.

The country's reserve position in the IMF fell by $10 million to touch $1.430 billion.

The treasury head at a private bank said the fall in the reserves was mainly due to currency revaluation. Though there were foreign institutional investor (FII) inflows, the euro had fallen by almost 200 points against the dollar, during this period.

The GBP and the yen had also weakened against the dollar, he said.

As per figures from SEBI, the foreign institutional inflow into the equity market for the week under consideration was at $210.8 million

In the coming month, the rupee could touch 44.15/20 against the dollar as demand from oil importers may continue, said the treasury head. While FII inflows have continued, oil prices are still a concern, he said.

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