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Forex reserves rise $24 m

Our Bureau

MUMBAI, Nov 3

FOREX reserves have increased by $24 million to $45.161 billion for the week ended October 26 as compared to $45.137 billion in the previous week.

Foreign currency assets have risen by $25 million to $42.227 billion while gold remained flat at $2.925 billion. However, special drawing rights (SDRs) have declined by $one million to $9 million.

According to dealers, there have been some inflows in the past few weeks which could have contributed to the rise in reserves. There may also have been a change in the valuation of certain currencies held in the reserves, they added.

In the forex market, the rupee gained to the levels of 47.97 to a dollar as there was some dollar selling. The rupee ended the week around 47.9850. Dealers, however, expect the rupee to depreciate as demand for the greenback is expected to outweigh suppl y in the following fortnight.

``The next week may see some corporate demand for oil. There may not be much supplies, as the forthcoming fortnight is the Diwali fortnight which may keep most players away. Volumes in the market, therefore, are likely to be thin,'' said one dealer in a foreign bank. The broad range for the rupee in the next week is expected to be at 47.98-48.05/07.

Meanwhile, in the Government securities market, after rising continuously for the past few days, there was some profit booking witnessed on Saturday as Rs 6,000 crore released through CRR cuts came into the markets.

Dealers said that during the next week, the bond market is expected to remain subdued as there may be profit-booking.

``Papers in the range of 2016-26 could do well, as may papers in the 11-year tenor. However, the 9-per cent series may not do well as these papers may see some profit booking and consolidation,'' said one dealer in a private bank.

Bank credit has increased by Rs 1,587 crore to Rs 5,44,125 crore as on October 19 with food credit increasing by Rs 78 crore to Rs 50,280 crore and non-food credit Rs 1,509 crore to Rs 4,93,845 crore.

Total accommodation provided by scheduled commercial banks to the commercial sector in the form of bank credit and investments in shares, debentures, bonds and commercial paper has increased by Rs 25,947 crore to Rs 5,74,247 crore as on October 19 from R s 5,48,300 crore on March 23.

Year-on-year money supply has stood at 16.6 per cent for the fortnight ended October 19.