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The foreign exchange reserves of the country fell below $11 billion mark during the week ended on June 2008, reflecting the widening current account and trade deficits.
The foreign reserves held by the State Bank stood at $8.386 billion while those with other banks stood at $2.566 billion. The total reserves stood at $10.953 billion. An extraordinarily large trade deficit, which created a huge current account deficit, has also weakened the rupee from Rs 60 against a dollar at the beginning of the current year to around Rs 68 now. staff report
