MUMBAI, FEB 19The foreign exchange reserves of the country have crossed the $35 billionmark (around Rs 1,52,600 crore). Forex reserves rose by $91 million to$35.072 billion on February 11 from $34.981 billion in the previous week,the weekly statistical supplement of the Reserve Bank of India (RBI) said onSaturday. The forex reserves consists of foreign currency assets, gold and specialdrawing rights (SDRs). Foreign currency assets increased by $88 million to$32.115 billion, while SDRs rose by three million dollars to $13 million.Foreign currency assets were unchanged at $2.95 billion. Bankers expect further rise in forex reserves in the coming weeks followingthe heavy inflow of foreign institutional investments. FIIs have stepped uppurchases on Indian markets. On Thursday, FIIs pumped Rs 237 crore into theequities market. The buying by FIIs amounted to Rs 525.50 crore, while theirsales stood at Rs 288.60 crore. FII net investments in equities stand at Rs1,747.90 crore in February alone. While the money pumped in by the foreign investors is always at a steadylevel at below Rs 100 crore, there are brief flashes when their investmentssuddenly surge. On Thursday, they were in the market for pharma scrips,which took the Sensex up by more than 100 points. On Feb 13, the netinvestments by FIIs stood at Rs 408.50 crore, while on Feb 7 it had hit Rs267.60 crore. Market watchers said that their funds infusion is alwaystriggered off by a bullish sentiment on any sector or on the news of anywindfall for the economy in general. The rupee also remained steady in the last week. The rupee ended almoststeady on Friday in low volume trade with dollar supplies meeting most ofthe import demand during most of the week. There was oil import demand andsome hedging of foreign exchange loans and excess dollar supplies wereabsorbed by state-run banks. The rupee ended at 43.61 per dollar comparedwith its previous week's close of 43.61 Dealers said the pressure on forward premiums continued despite hopes theReserve Bank of India (RBI) will cut interest rates by the month-end thathad brought premiums down earlier this month. "There was paying interest upto May," a dealer with a private bank said.RBI steps up OMOMUMBAI: The Reserve Bank of India (RBI) said on Saturday it purchased a netRs 1,503 crore worth government bonds through open market operations (OMO)on February 18 compared to Rs 465 crore on February 17. Details of treasurybill purchases from primary dealers andsales of government bonds were notavailable. The central bank said the amount outstanding on account of refinance tobanks and primary dealers at the bank rate was Rs 14,062 crore on February18 compared to Rs 14,208 crore the previous day. The additional refinanceavailed at two hundred basispoints above the bank rate was Rs 2704 croreon February 18 compared to Rs 2697 crore the day before, the RBI said.
