The Hindu Business Line : Forex reserves rise $1.02 billion

Mumbai, Nov. 13 Foreign exchange reserves increased by $1.023 billion to touch $285.414 billion for the week ended November 6, according to the Reserve Bank of India’s weekly statistical supplement. The rise is on account of the RBI purchasing gold from the International Monetary Fund.

The RBI had bought 200 tonnes of gold valued at Rs 31,490 crore ($6.7 billion) under the IMF’s limited gold sales programme, last month.

In the earlier week, the reserves had fallen by $1.129 billion to $284.391 billion.

In the week under consideration, gold reserves increased by $6.7 billion to touch $17.500 billion.

Foreign currency assets increased by $ 4.811 billion to $261.957 billion. Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies.

“The dollar was weakening against other currencies, which is reflected in the reserves,” said a forex dealer with a public sector bank.

SDRs increased by $16 million to $5.258 billion.

The country’s reserve position in the IMF fell by $882 million to $699 million.

The rupee is likely to strengthen next week as there will be good inflows in the form of capital inflows, ECBs and FCCBs. The resistance band for the rupee is likely to be between 46.80 and 47.20, the dealer said.

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