The Hindu Business Line : Forex reserves rise by over $ 4 billion

Mumbai, Nov. 9 The forex reserves increased by $4.068 billion to touch $266.518 billion for the week ended November 2, 2007, according to the Reserve Bank of India’s Weekly Statistical Supplement.

In the previous week, forex reserves had increased by $ 1.307 billion to touch $262.450 billion. The increase was mainly on account of currency revaluation.

Forex reserves have been rising for over two months now. It has also been aided by the RBI buying dollars to keep the rupee from appreciating. On Thursday, the rupee remained flat against the dollar, on sentiments of the RBI intervention. The central bank has been intervening in the forex market not so much to aid the weakening dollar, as to reduce a sudden jump in the rupee’s value, said forex dealers.

In the week under consideration the euro gained and touched a record high of $ 1.4480 against the dollar.

The total FII inflows into the domestic equity market were $ 96.9 million, according to figures released by the Securities and Exchange Board of India.

As per the figures released by the RBI, the foreign currency assets went up by $3.635 billion to $258.264 billion for the week concerned. Foreign currency assets, as expressed in dollars, include the effect of appreciation or depreciation in non-US currencies (euro, sterling and yen) held in reserves.

After a month of no change, the country’s gold assets showed an increase of $ 444 million to touch $ 7.811 billion. SDRs were unchanged $ 13 million and the reserves in IMF went down by $ 11 million to $ 430 million.

Bank credit up

Bank credit increased by Rs 6,704 crore to touch Rs 20,25,879 crore for the fortnight ended October 26, 2007. Of this, food credit decreased by Rs 1,153 crore to touch Rs 35,866 crore and non-food credit increased by Rs 7,857 crore to touch 19,90,012 crore.