The Hindu Business Line : Forex reserves dip by $14 million

THE country's forex reserves recorded a dip of $14 million to touch $119.322 billion for the week ended August 13, as per the latest Reserve Bank of India statistics.

Reserves were at $119.336 billion in the previous week.

Analysts ascribed the relatively minor decline in the level of reserves to some revaluation of currencies in the foreign currency asset basket of the central bank, coupled with market intervention by the RBI. The fall in reserves, however, was offset by significant dollar inflows.

Foreign currency assets dipped by $18 million to end at $ 113.900 billion for the week as compared $113.918 billion in the previous week, according to the weekly statistical supplement of the RBI. Foreign currency assets are expressed in dollar terms and include the effect of appreciation or depreciation of non-US currencies such as euro, sterling and yen held in the RBI's reserves.

Special Drawing Rights declined by $1 million to touch $1 million. The reserve tranche position in the IMF went up by $5 million to reach $1.298 billion as against $1.293 billion in the preceding week, according to the WSS.

The rupee had strengthened for three straight sessions to touch 46.20/21 against the greenback on the back of good dollar inflows. Towards the end of the week, the domestic currency had weakened to 46.31 per dollar.