Forex reserves hit year low

Indias forex reserves fell by 3.15 billion to 293.541 billion in the week to January 6,2012,from 296.668 billion in the week to December 30. The reserves are now at their lowest level in a year; at the start of 2011,reserves stood at 294.01 billion. Foreign currency assets,expressed in dollar terms,include the effect of appreciation or depreciation of other currencies held in reserves,the RBI said in a release on Friday.

In a recent report,Citigroup said that Indias forex reserves remained largely stagnant over the last three years,resulting in its forex import cover coming off significantly. The marginal reserve drawdown expected in FY12 and FY13 is likely to limit the bounce-back in the currency,currently at Rs 53/ levels, the report noted.

Samp;P likely to cut some euro zone countries

Standard amp; Poor8217;s is set to downgrade the credit ratings of several euro zone countries,but not those of Germany and the Netherlands,a senior euro zone source said. Another source confirmed 8220;several8221; countries would be hit. French TV,citing a government source,said France8217;s credit rating would be downgraded and another source said Slovakia,the country currently rated A by Samp;P,would suffer the same fate.