Rupee Hits Low of 59.27; Government Steps In

The Indian currency dropped sharply a day after the US Federal Reserve chairman Ben Bernanke signalled that the Fed would start winding down its stimulus spending later this year.

The Fed move is likely to lead to appreciation of the US currency against its major rivals.

The Indian currency recovered in the afternoon after the government said it was ready to take steps to curb volatility.

Forex Reserves Up $982 Million to $290.66 Billion

Foreign exchange reserves were up by USD 982 million to USD 290.66 billion on the back of healthy rise in the core currency assets, the Reserve Bank said on Friday.

The total reserves had swollen by USD 1.78 billion to USD 289.7 billion in the previous reporting week. Foreign currency assets, a major component of the forex reserves, rose USD 962.5 million to USD 261.09 billion for the week ended June 14, the Reserve Bank said on Friday.

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Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of the non-US currencies, such as the euro, pound and yen, held in the reserves, the bank said.

The gold reserves were unchanged at USD 22.836 billion, the bank said. For the week under review, the special drawing rights (SDRs) were up by USD 13 million to USD 4.401 billion, while the country's reserve position with the IMF was also up by a USD 6.8 million to USD 2.333 billion, the bank data showed.

UBS To Shut India Banking Unit

Swiss Bank UBS AG is winding up its banking business in India as part of its global strategy of accelerating its exit from what it describes as "capital intensive business". The group will continue to be present in India as an investment bank which will house its corporate client service business.

Although UBS had a full-fledged banking licence in India, its focus was on wealth management clients providing forex, fixed income and credit services through its single branch in Mumbai.

UBS was in the news last year when its India chief Manish Girotra, who had been face of the bank for more than a decade, put in her papers. Girotra was replaced by Aashish Kamath, who heads India operations.

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According to data provided by RBI in its "profile of banks", UBS profit was Rs 312 crore in FY12 and Rs 579 crore in FY11.

The bank had a capital base of close to Rs 2,000 crore as on end-March 2012, including reserves and surplus. It had deposits of Rs 631 crore as on end March 2012 and investments of Rs 3,796 crore and advances of Rs 685 crore.