The Hindu Business Line : Forex reserves up $711 m on NRI funds, trade inflows

TRADE flows and NRI remittances continue to aid the country's forex reserves, which surged by $711 million to touch $75.751 billion for the week ended April 11 compared to $75.040 billion in the previous week, according to the latest RBI statistics.

Forex dealers and analysts primarily ascribe the rise in reserves to the RBI's steady and consistent mopping up of dollar liquidity from the markets, in a bid to prevent any sharp appreciation in the rupee.

As a result of the apex bank's absorbing dollars, tremendous rupee liquidity has been generated in the government securities market, leading the inter-bank call rates to be quoted at 4 per cent this week, which is below the repo rate at 5 per cent.

Analysts maintain that according to some indices, the domestic currency is not undervalued against the dollar anymore. In fact, the rupee is expected to continue its uptrend next week and is likely to trade at 47.20 levels, they said. The rupee closed the week on Thursday at 47.35/3550 per dollar. Forex and debt markets remained closed here on Friday, due to a bank holiday.

Meanwhile, according to the weekly statistical supplement of the RBI, foreign currency reserves have increased by $711 million to touch $72,213 billion. Gold reserves remained at $3.534 billion while special drawing rights were at $4 million.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Forex reserves up $711 m on NRI funds, trade inflows

Interest rate derivatives trading from April 28

Kotak Bank's `high-yield' a/c attracts NRIs

Corpn Bank looks to Rs 40,000-cr turnover

Wage talks: Bank union opposes IBA preconditions

Naidu headhunting for co-op banks