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.

-->

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.