The Hindu Business Line : Forex reserves up $42 m

AFTER declining for three weeks in a row, the country's forex reserves inched up by $42 million for the week ended September 30. According to the Reserve Bank of India's Weekly Statistical Supplement, the total reserves are at $143.059 billion against $143.02 billion in the earlier week.

In the previous three weeks, the total decline in reserves was $2.53 billion.

For the week under review, the foreign currency assets fell by $128 million to touch $136.920 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 increased by $177 million to touch $4.712 billion. During the week under consideration, the price of standard gold rose by around Rs 100, which could have added to the value of the total reserves.

Special Drawing Rights was unchanged at $4 million and the country's reserve position in the IMF fell by $7 million to touch $1.423 billion.

As per figures from SEBI, the foreign institutional inflow into the equity market for the week under consideration was at $83.5 million.

In the coming week, the rupee is likely to trade between 44.20 and 44.50, said dealers. Most dealers are of the opinion that some pressure on the rupee is likely as inflation is inching up and the trade deficit is widening. There could be selling by exporters above the 44.50-level.

"The situation is uncertain. It will depend on how the stock market will open on Monday. The equity market and FII inflow are still big factors," said a dealer with a private bank.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Forex reserves up $42 m

LIC Housing Fin may rework plans on raising resources

J&K Bank to work on Sunday in quake-hit areas

ICRA to develop credit risk-rating model for United Bank of India

European Central Bank likely to raise interest rate by 25 basis points

Interest rates may harden, say bankers

RBI proposes to raise Rs 2,500 cr under MSS