The Hindu Business Line : Forex reserves rise $ 1.6 b

THE country's forex kitty has been fortified by another $ 1.609 billion during the week ended February 6. Total foreign exchange reserves now stand at $ 106.607 billion, as per the latest RBI statistics.

In the previous week, the country's forex reserves were aggregating $ 104.998 billion.

According to currency analysts, the accretion to the forex reserves has been in part due to the revaluation of the RBI's basket of currencies and in part due to consistent dollar flows into the country.

Foreign currency assets of the country grew by $ 1.535 billion to touch $ 102.315 billion. According to the Weekly Statistical Supplement (WSS) of the RBI, foreign currency assets expressed in US dollar terms include the effect of appreciation and depreciation of non-US currencies such as Sterling, Euro and Yen held in the reserves.

The rupee is expected to continue on its appreciation mode on account of the steady spate of dollar inflows continuing to flood the market in the wake of relatively low demand for the greenback from corporates.

Meanwhile, according to the WSS, weekly statistical supplement of RBI, gold reserves increased by $ 74 million to touch $ 4.289 billion, while special drawing rights remained steady at $ 3 million.