MUMBAI, Oct 19: Indian foreign exchange reserves scaled a new high of $63.932 billion on October 11, boosted by export remittances and analysts expect the trend to continue, underpinned by hopes of improvement in India’s trade balance.

Data released by the Reserve Bank of India on Saturday showed the nation’s reserves rose $673 million in the week to October 11, after rising by $538 million and $200 million in the preceding two weeks.

It is largely fuelled by favourable trade balance, said Sanjeet Singh, an analyst with ICICI Securities and Finance Company Co Ltd.

He said there has been no big pick-up in import demand, which has helped in narrowing the trade gap.

Indian exports in April-August, the first five months of fiscal 2002/03, grew 13.37 percent to $19.76 billion from $17.43 billion in the same period last year. The government has set an annual export growth target of 12 pre cent for the year to March 2003.

Analyst said healthy inflows will also ease off any pressure on the Indian rupee. The local currency ended Friday at 48.3950/4050 per dollar, slightly lower than the previous close.

But it came off an intra-day low of 48.4175 after state-run banks, acting on behalf of the central bank, steadily sold dollars at 48.4125.—Reuters