Date:26/11/2005 URL: http://www.thehindubusinessline.com/2005/11/26/stories/2005112603480600.htm

Back Forex reserves down by $127 m

Our Bureau

Mumbai , Nov. 25

THE foreign exchange reserves fell for the third week in a row, due to a fall in foreign currency assets.

The forex reserves have fallen by a cumulative $1.593 billion in three weeks.

According to the Reserve Bank of India's Weekly Statistical Supplement, total reserves fell by $127 million to $142.181 billion in the week ended November 18.

In the previous two weeks, the reserves had dropped by $310 million and $1.156 billion respectively.

Foreign currency assets fell by $123 million and accounted for the major part of the decline. Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies, such as euro, sterling and yen. "The euro was volatile and fell by nearly a 100 points during that week. The currency revaluation effect could have therefore resulted in a fall in the reserves," said the treasury head of a private bank. In the week under review, the euro moved from $1.1765 to $1.1684.