Date:05/11/2005 URL: http://www.thehindubusinessline.com/2005/11/05/stories/2005110502630600.htm

Back Forex reserves up $678 m

Our Bureau

Mumbai , Nov. 4

THE country's forex reserves increased by $678 million during the week ended October 28, due to a rise in foreign currency assets.

According to the weekly statistics from Reserve Bank of India, total reserves increased to $143.774 billion against $143.096 billion in the earlier week.

The foreign currency assets increased by $671 million to touch $137.632 billion for the week under review. Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies (such as the euro, the sterling and the yen) held in reserves.

Gold and SDRs were unchanged at $4.712 billion and $4 million, respectively. The country's reserve position in the IMF increased to $7 million to touch $1.426 billion.

According to the chief of treasury of a private bank, the main reason for the increase in forex reserves was appreciation in the dollar and the fact that the RBI had not entered the forex market, either as a buyer or as a seller.

As per figures from SEBI, the foreign institutional investor outflow from the equity market for the week under consideration was $407.9 million.