Foreign exchange reserves dip by 1.14 bn dollar

Mumbai: India's foreign exchange reserves suffered a slide following a huge USD 1.14 billion dip in gold reserves USD 359.155 billion for the week ended January 7.

Total reserves had risen by USD 625.5 million to USD USD 360.296 billion in the previous reporting week.

RBI fixed the reference rate for the USD at Rs 68.2310 and Euro at Rs 72.4750 against preceding week's level of Rs 67.9522 and Rs 71.8662, respectively.

In cross-currency trade, the Indian currency displayed a mixed trend with pound sterling rebounding after a third straight week of downtrend to end at 83.22 from 84.01.

However, rupee remained subdued euro to settle at 72.62 as compared to 71.97 and also dropped further against the Japanese conclude at 59.49 per 100 yens from 58.63 last Friday. In the forward market, premium for dollar declined owing to fresh receiving from exporters.

The benchmark six-month forward dollar premium payable in June edged lower to 144-146 paise from 147-149 paise and the far-forward contract maturing in December 2017 also slipped to 286-288 paise from 288-290 paise previously.

Global commodity trade, crude prices finished modestly lower on growing concerns over the production cuts previously promised by OPEC nations. Oil prices have initially strengthened into 2017 on expectations of these productions cuts.