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Forex reserves up $162 million to $46.631 billion

India's foreign exchange reserves hit a new high in the week to November 23, climbing for the ninth straight week on the back of trade inflows which were seen continuing, analysts said on Saturday.

Data released by the Reserve Bank of India on Saturday showed reserves rose to $46.631 billion, up $162 million from a week ago. "Exporters have been encouraged by the rupee's steady range, and their continued supplies have resulted in surplus dollars," said Sharukh Wadia, head of treasury at IndusInd Bank.

"Besides, importers had already covered their dollar requirements in September for the next couple of months," he said, adding that poor demand for the US currency had also helped.

Demand for forward dollars and fears that foreign funds would exit domestic bourses after the September 11 attacks on the United States had dragged the Indian rupee to a lifetime intra-day low of 48.43 to a dollar in September.

The rupee has since recovered from its low, closing at 47.945/955 per dollar on Thursday. Most financial markets were shut on Friday for a local holiday.

"I expect exporter bookings to continue and data for the last week of November could see reserves rising past the $47-billion-mark," Wadia said.

However, analysts said dollar supplies from foreign funds, which have been significant contributors to India's foreign exchange reserves this year, were likely to come down.

"Inflows from these investors are likely to be muted at best, as they are unlikely to be active buyers in the last month of the year," said one currency trader.

Foreign funds, a major influencing factor in Indian markets, bought a net $2.7 billion in Indian debt and equities in the year to October. But in November, their net purchases until Wednesday stood at a mere $8.7 million.

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