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2026.10.0708:06:25UTC+00India’s FX Reserves Fall for Fourth Week

India’s foreign exchange reserves fell for a fourth straight week to $734.6 billion as of October 2, 2026, according to a footnote in Reserve Bank of India Governor Sanjay Malhotra’s monetary policy statement. The stockpile has retreated from a recent peak of $785.71 billion on September 4, marking a decline of about $50 billion in less than a month.

The drawdown primarily reflects RBI intervention in the foreign-exchange market, including dollar sales to curb the rupee’s slide and sell/buy FX swaps designed to absorb surplus liquidity. Despite these measures—along with the central bank’s first interest-rate increase since 2023 in October—the rupee has continued to weaken, weighed down by elevated crude oil prices, higher US Treasury yields, and rising foreign equity outflows.

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