News: Indian forex reserves fall by over $1.6 bn

(BL 17/06/2006) Mumbai - After a rise of about $2 billion last week, the country's forex reserves saw a total decline of $1.652 billion for the week ended June 9, 2006. This huge decrease was mainly on account of the euro weakening against the dollar, said dealers.

According to the Reserve Bank of India's Weekly Statistical Supplement, the forex reserves decreased by $1.652 billion to touch $162.876 billion for the week ended June 9, 2006. In the earlier week, forex reserves had risen by $1.937 billion to touch $164.529 billion.

Foreign currency assets

The foreign currency assets for the week under consideration fell by $1.651 billion to touch $155.087 billion. Foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of currencies as euro, sterling and yen. The euro dropped from $1.2960 to $1.2664 against the dollar during the week.

The week under consideration saw FII buying domestic equities worth $289.9 million.

There was no change in the gold reserves ($7.010 billion). The country's reserve position in the IMF declined by $1 million to $779 million.