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India`s forex reserves rises to $48.299 bn
India`s foreign exchange reserves rose $254 million to a record $48.299 billion in the week to January 4, data from the Reserve Bank of India (RBI) showed on Saturday in Mumbai.
India's foreign exchange reserves rose $254 million to a record $48.299 billion in the week to January 4, data from the Reserve Bank of India (RBI) showed on Saturday in Mumbai.
The reserves have risen steadily for 15 weeks and the latest surge was mainly due to an increase in currency reserves rather than other assets such as gold, the central bank's data showed.
Currency reserves have been boosted by foreign portfolio investment flows, repatriation by non-resident Indians after the September 11 attacks and lately by the mopping up of dollars from the currency markets on behalf of the RBI to bring the rupee down, analysts said. Bunched up dollar supplies after the holiday season could also have made their way to Indian markets during the week to January 4, analysts said.
"The RBI is collecting a decent amount of dollars through state-run banks to pull the rupee down," IndusInd Bank head of treasury, Shahrukh Wadia said who felt the rupee was overvalued by about 1.5 per cent on its real effective exchange rate.
The RBI is believed to be nudging the rupee down to maintain export competitiveness in the wake of the yen's slide and worries over its effect on other regional currencies. Though concerns over war with Pakistan remain after the largest build-up of military strength at the borders of the two countries in 15 years, dealers say it is unlikely to push the Indian rupee down too much, unless war breaks out.
The rupee ended at a new closing low of 48.4125/48.4200 per dollar on Friday, just shy of its lifetime low of 48.43 hit on September 17. Bureau Report
Currency reserves have been boosted by foreign portfolio investment flows, repatriation by non-resident Indians after the September 11 attacks and lately by the mopping up of dollars from the currency markets on behalf of the RBI to bring the rupee down, analysts said. Bunched up dollar supplies after the holiday season could also have made their way to Indian markets during the week to January 4, analysts said.
"The RBI is collecting a decent amount of dollars through state-run banks to pull the rupee down," IndusInd Bank head of treasury, Shahrukh Wadia said who felt the rupee was overvalued by about 1.5 per cent on its real effective exchange rate.
The RBI is believed to be nudging the rupee down to maintain export competitiveness in the wake of the yen's slide and worries over its effect on other regional currencies. Though concerns over war with Pakistan remain after the largest build-up of military strength at the borders of the two countries in 15 years, dealers say it is unlikely to push the Indian rupee down too much, unless war breaks out.
The rupee ended at a new closing low of 48.4125/48.4200 per dollar on Friday, just shy of its lifetime low of 48.43 hit on September 17. Bureau Report