India Forex - Forex Trading in India

India Tuesday 29 June 2010 - India’s foreign exchange reserves rose to $275.969 billion, rose by $3.2 billion during the week ended 18 June. The reserves stood at $272.783 billion as of 11 June.

At the same time, foreign currency assets with the Reserve Bank increased to $250.370 billion from $247.241 billion last week.

The nation’s reserve position with the International Monetary Fund amounted to $1.310 billion, larger than the $1.298 billion reported in the preceding week.

Gold reserves remained unchanged at $19.423 billion.

The rise in reserves was attributed largely on account of the dollar weakening against major currencies during the week, which resulted in revaluation of non-dollar assets in the reserves.

Besides, foreign investors also brought additional funds into Indian stocks and bonds during the week.

India Saturday 12 June 2010 - India`s forex reserves decreased further by USD 877 million to stand at USD 271,093 million as on June 4, 2010 mainly on account of sharp fall in foreign currency assets.

As per the weekly statistical supplement of the Reserve Bank of India (RBI) released on June 11, 2010, foreign currency assets plunged by USD 1,711 to stand at USD 245,552 million.

During the same period, reserve position in the International Monetary Fund (IMF) decreased by USD 11 million to stand at USD 1,298 million. Special Drawing Rights (SDRs) decreased by USD 41 million to stand at USD 4,820 million.

However, gold reserves increased by USD 886 million to stand at USD 19,423 million.

Foreign currency assets expressed in USD include the effect of appreciation or depreciation on non-US currencies (such as Euro, Sterling and Yen) held in reserves.

India Monday 7 June 2010 - India’s central bank, the Reserve Bank of India said country’s foreign exchange reserves fell by a significant $1.394 billion for the week ending May 28 to $271.970 billion as compared to $273.364-billion in the previous week.

Reserves had inched up by a marginal $64 million to $273.364-billion for the week ending May 21, as compared to $273.300-billion in the period a week ago.

Foreign currency assets, during the week, declined to $247.263 billion as compared to $248.637 billion in the previous week, the RBI said in its weekly report.

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 the reserves, the RBI said.

During the week, gold reserves remained static at $18.537 billion while the country’s special drawing rights slightly declined to $4.861 billion, the RBI said.

India Saturday 29 May 2010 - India`s forex reserves increased marginally by USD 64 million to stand at USD 273,364 million as on May 21, 2010 mainly on account of rise in foreign currency assets.

As per the weekly statistical supplement of the Reserve Bank of India (RBI) released on May 28, 2010, foreign currency assets increased by USD 40 to stand at USD 248,637 million.

During the same period, gold reserves remained steady at USD 18,537 million. Reserve position in the International Monetary Fund (IMF) increased by USD 5 million to stand at USD 1,313 million.

Special Drawing Rights (SDRs) increased by USD 19 million to stand at USD 4,877 million.

Foreign currency assets expressed in USD include the effect of appreciation or depreciation on non-US currencies (such as Euro, Sterling and Yen) held in reserves.

India Saturday 22 May 2010 - Deputy Governor of the RBI said that the US dollar will continue to form the major chunk of Indian foreign exchange reserve.

This will happen since most of the trade done by India is denominated in this currency.

Talking to the reporters, K. C. Chakrabarty said that the Euro was not sufficient to form the component of the total reserve. And so, mojor part of it will be determined by the dollar.

As per the latest data released by the apex bank, India’s total foreign exchange reserve is $276.24 billion. This includes currency assets worth $251.47 billion.

No further break-up was given. Chakrabarty also reiterated that the rise in value of dollar against the major currencies will bear an impact on Indian rupee and by no means will the Central Bank let the rupee go down.

Till today, the rupee has hit a 61/2 month low figure of $47.33. This has happened because of the withdrawals done by foreign funds and also the falling stock markets.

The BSE index has gone down by as much as 2 per cent during Friday.

India Saturday 15 May 2010 - The country’s foreign exchange reserves fell $3.39 billion to $276.24 billion in the week up to May 7, as investors spooked by the sovereign debt crisis in Greece hammered the euro.

According to bank treasury officials, the weakening of the euro resulted in a fall in the value of the country’s non-dollar-denominated reserves, which are estimated at about 25 per cent of the total foreign exchange kitty.

This is the sharpest weekly fall in reserves since January 23, 2009, according to Bloomberg data.

“I would attribute it to the fall of the euro. The euro has been weakening ever since the sovereign debt crisis flared up again in the first week of May. The euro has fallen almost five per cent against the dollar since then,” said R V S Sridhar, head of markets at private sector lender Axis Bank.

In the week up to May 7, the euro fell 2.63 per cent against the dollar to 0.78. Over the period, the rupee fell from 44.54 to the dollar to 45.4.

Bankers said there was no major intervention by the Reserve Bank of India in the forex market, which is usually the reason for fluctuation in foreign exchange reserves. Foreign institutional investors sold equity and debt worth $875 million during the week, which also contributed to the fall in reserves.

Foreign currency assets fell $3.3billion to $251.47 billion in the week, according to RBI data. Gold remained unchanged while special drawing rights fell $75 million to $4.9 billion.

India’s reserve position at the International Monetary Fund fell $20 million to $1.3 billion. In rupee terms, the reserves went up by Rs 14,290 crore to the end the week at Rs 12,56,981 crore.

India Monday 10 May 2010 - The country`s forex reserves augmented marginally by $157 million to stand at $279,633 million mainly because of increase in gold reserves.

According to the weekly statistical supplement of the central bank released on May 7, gold reserves climbed by $551 to $18,537 million.

During the same period, foreign currency assets dropped by $354 million to $254,773 million.

The reserve position in the International Monetary Fund (IMF) also came down by $ 34 million to $1,341 million.

Special Drawing Rights (SDRs) reduced by $6 million to $ 4,982 million.

Foreign currency assets expressed in US dollar comprise the consequence of admiration or reduction on non-US currencies like Euro, Sterling and Yen held in reserves.

India Saturday 08 May 2010: FOREIGN exchange reserves rose $157 million during the week ended April 30, on higher valuation of gold in reserves during the week.

According to the latest data released by the Reserve Bank of India, the value of gold in reserves rose $551 million to touch $18,537 million. Foreign currency assets comprising dollars, pounds and euro, among others, on the other hand dipped $354 m during the week. Special Drawing Rights (SDR) — reserve currency with the International Monetary Fund — and the reserve capital with the IMF dipped by $6m and $34m, respectively, during the week.

In the banking sector, banks have again started parking funds in mutual funds in the absence of lending opportunities during this time of the year. They parked an additional Rs 766 crore during the fortnight ended April 23 to take their total MF exposure to Rs 1,06,285 crore.

In other developments, the central government has reduced its outstanding in its ways and means advances (WMA) account with the RBI to Rs 28,868 crore as on April 30 from Rs 31,349crore in the previous week. WMA is a facility under which the government — states as well as the Centre — can borrow from the central bank to meet its daily revenue mismatches.

While borrowings within the limit is at the prevailing repo rate, borrowings above the agreed limit (between the government and RBI) is at 2% higher than the repo rate. The state governments on the other hand hiked their WMA outstanding to Rs 1073 crore, up from Rs 552 crore over the previous week’s levels.

India Tuesday 20 April 2010 - Foreign exchange reserves stood at USD 280 billion as on April 9, the Reserve Bank said.

During 2009-10, India’s foreign exchange reserves increased by USD 27.1 billion to USD 279.1 billion, the RBI said in its Macroeconomic and Monetary Developments in 2009-10 released here today.

Foreign currency assets (FCAs) increased by USD 13.3 billion during the year.

Further the Reserve Bank purchased 200 tonnes of gold from the IMF as a part of its foreign exchange reserve management operations, it said.

“For dealing with external shocks transmitting through various accounts of the balance of payments, it is important to have adequate foreign exchange reserves,” the RBI said.

India Saturday 17 April 2010: India’s foreign exchange reserves rose by $932 million to $280 billion during the week ended April 9, largely on account of revaluation of non-dollar assets. The government, on the other hand, has borrowed Rs 10,789 crore from RBI to meet its daily revenue mismatches.

“The rise in foreign currency assets during the week is largely because of the dollar’s depreciation against major currencies, resulting in a revaluation of non-dollar assets such as yen, euro and the sterling pound, expressed in dollars,” said a public sector bank’s treasury official.

Foreign currency assets, including dollar, pound and euro rose by $933 million during the week under review while SDR (special drawing rights — the reserve currency with IMF) dipped $1 million, latest data released by RBI show.

Apart from Rs 10,789 crore borrowed by the central government, state governments borrowed Rs 2,110 crore during the week under the ways and means advances (WMA). This is a facility, whereby states as well as the Centre can borrow from RBI to meets daily revenue mismatches. While borrowings within the limit are at the prevailing repo rate, borrowings above the agreed limit are at 2% above the repo rate.