Mumbai: The country’s foreign exchange reserves rose by $962 million to $286.4 billion for the week ended November 13, 2009 despite dollar weakening nternationally, the Reserve Bank of India (RBI) said in its weekly statistical supplement released on Friday.
While foreign currency assets rose by $948 million to $262.9 billion, gold reserves remained unchanged at $17.5 billion, the bank said. Special drawing rights with the International Monetary Fund increased by $12 million to $5.27 billion, while reserves with the IMF rose by $2 million to $701 million.
Total reserves went up $40 billion in the past year, the central bank noted. Assets comprise of overseas currencies, gold and special drawing rights with the IMF. The rupee fell 0.7% this week to 46.65 against the dollar at the close. It rose 0.1% on Friday. The Sensex has rallied more than 76% this year, as foreigners bought the equivalent of $15.4 billion of stocks. The rupee completed its first weekly decline against the dollar this month on speculation investors will trim holdings of the nation’s assets as Asian stocks slumped.
The currency weakened after MSCI Asia Pacific Index fell 1.1% this week, the biggest weekly decline this month. The dollar advanced against eight out of the 10 major counterparts amid speculation investors sought safer assets over emerging markets.
“The rupee has a slightly weak outlook for the short-term because equities, local and global, look set to undergo a negative correction,” said Roy Paul, assistant manager of treasury at Federal Bank Ltd in Mumbai. “That would have a slowing effect on capital flows.”
On Friday, 10-year bonds rose for a sixth day, after the government sold bonds at yields lower than expected. The yield on the 6.9% bond maturing 2019 fell 7 bps, to 7.18% at the close.
Bond auctions for 7.32% notes due in 2014 was seen at a cutoff yield of 6.9035% lower than the estimate of 6.98%. Note maturing in 2020 was sold at 7.5591% lower than the estimate of 7.6%.
The call money rate ended steady around 3.25% on Friday on account of abundant liquidity. The three-day call money rate on Friday ended at 3.25-3.30%.
Source : Financialexpress.com