Forex reserves rise to $312 billion

The country's foreign exchange reserves rose by $203.2 million to $312.59 billion for the week ended June 9, show latest RBI data released on Friday. Foreign currency assets, a key component of reserves, rose $338.9 million to $285.63 billion.

Gold reserves fell during the week by $175.4 million to $20.79 billion. For the week under review, the Special Drawing Rights (SDRs) rose $2.7 million to $4.45 billion, while the country's reserve position with the International Monetary Fund was up $37 million to $1.71 billion.

Meanwhile, the rupee fell to one month low on Friday on concern that the trade deficit will widen from a 10-month high after violence in Iraq fueled a surge in global crude prices. The rupee ended at Rs 59.78 compared with previous close of Rs 59.26. The rupee had ended at Rs 60.05 on May 12. Today the rupee opened at Rs 59.31 and during intra-day trades it touched a low of Rs 59.80 per dollar.

"There was dollar demand from corporates as well as oil marketing companies due to which the rupee weakened. Next week the rupee may trade in the range of Rs 59.50-60.25 per dollar," said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai. According to Gonsalves the bias is towards weakening of the rupee.

Even government bond (g-sec) yields rose today with the yield on the 10-year bond ending at 8.60 per cent compared with previous close of 8.55 per cent.