Mumbai, Oct 04: India's foreign exchange reserves swelled to a record $89.33 billion on September 26 on strong investment inflows and some dollar weakness, but would have fallen since because of a big foreign currency bond redemption. Data released by the Reserve Bank of India on Saturday showed the reserves, Asia's sixth largest, rose by $771 million over the week and were up by more than $19 billion so far in 2003.

"Strong portfolio inflows are one factor," said S P Prabhu, an analyst with IDBI Capital Market Services Ltd.
"The fall in the dollar against other currencies such as the euro and yen, in which a part of the reserves are, held would also have boosted the overall (dollar) value of the reserves."
Foreign fund investments in Indian shares surged this year with a robust economic pick-up expected after the farm-driven economy, Asia's third largest, got its best rains in five years.
Their investments totalled more than $3 billion between January and September, four times the $740 million invested thoughout 2002. Bureau Report