| Date: |
15-05-2010 |
| Subject: |
Forex reserves down $3.39 billion |
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Mumbai, May 14 Forex reserves declined by $3.395 billon to $276.238 billion for the week ended May 7, according to the latest figures from the Reserve Bank of India.
The fall in reserves is on account of selling by foreign investors in the equity markets and the decline of the euro against the dollar, said dealers.
In the earlier week forex reserves had increased by $157 million to $279.633 billion.
In the week under consideration FIIs were net sellers to the tune of Rs 4,000 crore. The euro touched a level of $1.27 against the dollar, which was a 14-month low and was earlier seen in March 2009.
“The fall in the euro's value must have devalued the reserves by at least half a billion,'' said a dealer with a private bank.
According to the RBI's Weekly Statistical Supplement, foreign currency assets fell by $3.3 billion to $251.473 billion. Foreign currency assets expressed in dollar terms include the effect of appreciation or depreciation of non-US currencies.
Gold reserves were unchanged at $551 million. SDRs fell by $75 million to $4.907 billion. The Reserve position in the IMF fell by $20 million to $1.321 billion.
Source : Business Line
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