The Hindu Business Line : Forex reserves see modest rise

Mumbai, April 18 Foreign exchange reserves for the week ended April 11 increased by a modest $ 482 million to touch $ 312.367 billion, due to a rise in foreign currency assets, according to the Reserve Bank of India’s Weekly Statistical Supplement.

In the previous week, the foreign exchange reserves rose by $2.724 billion to touch $311.885 billion.

Foreign currency assets increased by $ 426 million to touch $ 301.820 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.

In the week under review, the euro gained against the dollar and touched a record high of $1.5912. The FII inflows into the domestic equity market were also a meagre $1.8 million, according to figures from the Securities and Exchange Board of India.

In the week under consideration the country’s gold reserves and SDRs remained unchanged at $10.039 billion and $ 18 million respectively.

The reserve position in the IMF increased by $ 56 million to touch $ 490 million.

As the Reserve Bank of India has hiked the CRR by 50 basis points, the interest rate differential between US and India will widen, resulting in more dollar inflows. Therefore, the rupee could see strengthening next week, said dealers.

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