News: Indian forex reserves rise $1.02 b

(BL 06/01/2007) Mumbai - The country's foreign exchange reserves rose $ 1.018 billion to touch $ 177.251 billion for the week ended December 29, 2006 mainly on foreign currency revaluation.

In the previous week, forex reserves had increased by $ 714 million to touch $ 176.233 billion.

The euro gained from $ 1.3109 to $ 1.3181 in the week under review while the dollar was weak against most global currencies. The rupee too touched a 10-month high against the dollar that week. On Friday, the rupee closed at 44.31.

Foreign currency assets

As per the Reserve Bank of India's weekly statistical supplement, foreign currency assets rose $996 million to touch $ 170.187 billion. Foreign currency assets expressed in dollars include the effect of appreciation or depreciation in non-US currencies (such as euro, sterling and yen) held in reserves.

In the week under consideration, gold increased by $ 23 million to touch $ 6.517 billion. SDRs were unchanged at $ 1million. India's reserve position in the IMF fell by $1 million to touch $ 546 million.

Next week the rupee may appreciate to 44, as the RBI does not seem to be showing any signs of intervening in the market, said a treasury head.

Foreign exchange inflows would continue to be strong as most corporates are likely to post good third quarter results and the advance tax collections have been better than expected. The Indian equity market is still buoyant with intermittent correction, the official said.