The Hindu Business Line : Forex reserves up by $2 b

The forex reserves touched $146.16 billion for the week ended March 17. In the previous week, the reserves had increased by $773 million to $143.92 billion.

This is the eighth consecutive week that there has been an increase in the country's forex reserves.

According to the RBI's weekly statistical supplement, foreign currency assets increased by $2.234 billion to touch $139.653 billion during the week. Foreign currency assets expressed in dollar terms include the effect of appreciation or depreciation of non-US currencies such as euro, sterling and yen.

The treasury head of a private bank said, "FII inflows as well as external commercial borrowings of companies could have contributed to the rise. Additionally, the appreciation of the euro from $1.19 to $1.22 during the week under consideration, might have caused the revaluation effect."

Dealers said that the central bank had been buying dollars in the market. The FII inflows were $205 billion.

According to the RBI release, gold and SDRs remained unchanged at $5.747 billion and $3 million, respectively.

The reserve position in the IMF, however, gained by $4 million to touch $756 million.

Dealers said that the rupee was likely to remain in the range of 44.50 to 44.80. "The month-end as well as year-end demand might cause the rupee to depreciate. However, if major currencies like the euro bounce back, then the rupee could remain firm as well," said a dealer at a private bank.

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