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India's Forex Reserves Plummet by $18.34 Billion Amid RBI Intervention
M
Moneycontrol•02-10-2026, 19:25
India's Forex Reserves Plummet by $18.34 Billion Amid RBI Intervention
- •India's foreign exchange reserves dropped by $18.343 billion to $757.455 billion in the week ending September 25.
- •The decline was primarily due to a $15.570 billion fall in Foreign Currency Assets (FCAs), the largest component of the reserves.
- •The Reserve Bank of India (RBI) intensified intervention in the foreign exchange market to counter pressure on the rupee from higher crude oil prices and US Treasury yields.
- •Gold reserves decreased by $2.591 billion, while Special Drawing Rights (SDRs) and India's reserve position with the IMF also saw declines.
- •The RBI's net short dollar position in its forward book reached a record $200.06 billion at the end of August, up from $136.77 billion in July.
Key Questions Answered
India's foreign exchange reserves fell by $18.343 billion to total $757.455 billion during the week ended September 25.
The latest decline was largely driven by a drop in foreign currency assets, which fell by $15.570 billion to $615.411 billion.
The RBI intervened to contain excessive volatility as the rupee remained under pressure from higher crude oil prices and US Treasury yields, and had breached the crucial 96-per-dollar mark.
