Our Bureau

Mumbai, Nov. 17

Forex reserves jumped by $1.168 billion to $168.284 billion for the week ended November 10, mainly due to a rise in foreign currency assets.

In the previous week, forex reserves increased by $24 million to touch $167 billion. Foreign currency assets increased by $1.172 billion to touch $161.563 billion during the week, according to RBI's Weekly Statistical Supplement.

"Global currencies such as euro and sterling gained against the dollar, helping reserves to rise," said a chief dealer of a private bank. The Reserve Bank of India is also suspected to have intervened in the forex market, he said.

The euro traded between $1.2701 and $1.2876 in the week under consideration. There was FII inflow of around $381 million into the domestic equity market, according to figures from the Securities and Exchange Board of India.

The reserves with IMF rose by $2 million to $652 million and special drawing rights were down by $6 million to $1 million.

Gold reserves were unchanged at $6.068 billion. Dealers said the market is bullish on the rupee. However, it is difficult to predict the likely range, as it has been extremely volatile, with a 20 paise movement.

(This article was published in the Business Line print edition dated November 18, 2006)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.