India forex reserves fall for fourth week to $734.6 billion
In short
India’s forex reserves dropped by $12.95 billion to $734.60 billion as of October 2. That was the fourth week in a row that the reserves went down, after a $18.34 billion fall the week before.
This matters because reserves help support the rupee and pay for imports. The reporting says the RBI was using dollar sales and swaps, but it does not say when the slide will stop.
What the reporting says
India's foreign exchange reserves fell by $12.95 billion to $734.60 billion as of October 2, marking a fourth straight weekly drop. The decline was driven by lower foreign currency assets and gold reserves, while one report also said RBI dollar sales and FX swaps were used to support the rupee. The reporting shows a continued drawdown, but it does not say how long the pressure will last.
Why it matters
India's foreign exchange reserves dropped by $12.95 billion to $734.60 billion as of October 2, after a $18.34 billion decline the previous week. The reported reasons were lower foreign currency assets and gold reserves, and one summary said RBI dollar sales and FX swaps were used to smooth the rupee's decline and absorb surplus liquidity. The reporting does not state whether the drawdown will continue.