Forex reserves down by $4.56 billion
Friday, August 20, 2010 4:19 PM
Mumbai, Aug. 20
After being on the ascent for nine weeks in a row, foreign exchange reserves declined by $4.565 billion to $282.791 billion for the week ending August 13, on account of currency revaluation.
The week in question saw the euro and pound weakening against the dollar, as investors turned risk averse, said forex dealers.
In the earlier week ending August 6, foreign exchange reserves were up by $3.173 billion to $287.356 billion.
According to the Reserve Bank of India's latest Weekly Statistical Supplement, foreign currency assets declined by $4.488 billion to $256.591 billion. 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 held in reserves.
In the period from August 8 to August 13, the euro fell sharply from $1.3288 to $1.2752 to a dollar. The pound also weakened from $1.5984 to $1.5591 to a dollar.
According to a dealer with a currency brokerage, the sentiment of risk aversion among investors led to the weakening of cross currencies such as euro and pound against the dollar. The fear that the bonds issued by Greece may not be able to attract sufficient investors is also adding to the negative sentiment against the euro.
“When there is risk aversion only the yen and the dollar gain,'' he said.
In the week under review, gold was unchanged at $19.278 billion. SDRs fell by $56 million to $4.985 billion and the country's reserve position in the IMF fell by $21 million to $1.937 billion.
Bank deposits
In the reporting fortnight ended July 30, demand deposits shot up by Rs 41,333 crore. Time deposits increased by Rs 6,426 crore. As of July 30, time and demand deposits stood at Rs 40,21,710 crore and Rs 6,17,886, crore respectively, according to the RBI's WSS.
Analysts attribute the spurt in demand deposits to foreign institutional investors temporarily parking money before investing in the equity markets and also corporates receiving inflows.
Friday, August 20, 2010 4:19 PM
Mumbai, Aug. 20
After being on the ascent for nine weeks in a row, foreign exchange reserves declined by $4.565 billion to $282.791 billion for the week ending August 13, on account of currency revaluation.
The week in question saw the euro and pound weakening against the dollar, as investors turned risk averse, said forex dealers.
In the earlier week ending August 6, foreign exchange reserves were up by $3.173 billion to $287.356 billion.
According to the Reserve Bank of India's latest Weekly Statistical Supplement, foreign currency assets declined by $4.488 billion to $256.591 billion. 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 held in reserves.
In the period from August 8 to August 13, the euro fell sharply from $1.3288 to $1.2752 to a dollar. The pound also weakened from $1.5984 to $1.5591 to a dollar.
According to a dealer with a currency brokerage, the sentiment of risk aversion among investors led to the weakening of cross currencies such as euro and pound against the dollar. The fear that the bonds issued by Greece may not be able to attract sufficient investors is also adding to the negative sentiment against the euro.
“When there is risk aversion only the yen and the dollar gain,'' he said.
In the week under review, gold was unchanged at $19.278 billion. SDRs fell by $56 million to $4.985 billion and the country's reserve position in the IMF fell by $21 million to $1.937 billion.
Bank deposits
In the reporting fortnight ended July 30, demand deposits shot up by Rs 41,333 crore. Time deposits increased by Rs 6,426 crore. As of July 30, time and demand deposits stood at Rs 40,21,710 crore and Rs 6,17,886, crore respectively, according to the RBI's WSS.
Analysts attribute the spurt in demand deposits to foreign institutional investors temporarily parking money before investing in the equity markets and also corporates receiving inflows.