Date:13/10/2007 URL: http://www.thehindubusinessline.com/2007/10/13/stories/2007101351780600.htm

Back Forex reserves rise $3.6 b

Our Bureau

Mumbai, Oct. 12 The country’s forex kitty swelled by $3.568 billion for the week ended October 5, on the back of continuous intervention by the Reserve Bank of India in the forex market.

“The RBI was constantly intervening in the forex market, buying dollars in order to cap the appreciation of rupee,” said Mr L.V. Prasad, Head-Forex and Commodities, IndusInd Bank.

The forex reserves had surged by a whopping $11.871 billion to touch $247.762 billion for the week ended September 28, 2007, said the Weekly Statistical Supplement from RBI.

The foreign currency assets went up by $3.569 billion to touch $243.524 billion. The country’s reserves in gold and SDRs remained unchanged at $7.367 billion and $2 million, respectively. The country’s reserve position in the IMF went down by $1 million to $437 million.