News: Indian forex reserves rise $1.2 b

(BL 28/10/2006) Mumbai - Forex reserves rose by $ 1.202 billion to $ 166.153 billion for the week ended October 20, due to a rise in foreign currency assets. In the previous week, reserves fell by $ 324 million to $ 164.95 billion.

Foreign currency assets increased by $ 1.199 billion to touch $ 159.304 billion during the week, according to RBI's Weekly Statistical Supplement. "FII inflows at $ 558 million have moved into the stock markets in the week under consideration.

With corporates turning out good Q2 results, dollar inflows could rise impacting the rupee," said a treasury head of a private bank. The reserves with IMF rose by $ 3 million to $ 646 million. Major currencies such as the euro and the yen gained against the dollar during the week. The euro traded in the range of $ 1.2531 to $ 1.2613. Gold reserves were unchanged at $ 6.202 billion and Special Drawing Rights remained at $ 1 million. Dealers said the outlook on rupee is bullish and the home currency could touch 45.05.