India’s FX Reserves Fall for Fourth Week

2026-10-07 08:06 By Joana Ferreira 1 min. read

India’s foreign exchange reserves fell for a fourth consecutive week to $734.6 billion as of October 2, 2026, according to a footnote to Reserve Bank of India Governor Sanjay Malhotra’s monetary policy statement.

Reserves have declined from their recent peak of $785.71 billion on September 4, a drop of around $50 billion in less than a month.

The drawdown reflects RBI intervention in the foreign-exchange market, including dollar sales to smooth the rupee’s decline and sell/buy FX swaps aimed at absorbing surplus liquidity.

Despite the central bank’s support, including its first rate hike since 2023 in October, the rupee has continued to weaken, pressured by elevated oil prices, rising US Treasury yields and increased foreign equity outflows.



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India’s FX Reserves Fall for Fourth Week
India’s foreign exchange reserves fell for a fourth consecutive week to $734.6 billion as of October 2, 2026, according to a footnote to Reserve Bank of India Governor Sanjay Malhotra’s monetary policy statement. Reserves have declined from their recent peak of $785.71 billion on September 4, a drop of around $50 billion in less than a month. The drawdown reflects RBI intervention in the foreign-exchange market, including dollar sales to smooth the rupee’s decline and sell/buy FX swaps aimed at absorbing surplus liquidity. Despite the central bank’s support, including its first rate hike since 2023 in October, the rupee has continued to weaken, pressured by elevated oil prices, rising US Treasury yields and increased foreign equity outflows.
2026-10-07
India Forex Reserves Rise to Record
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2026-08-28