Business & Economy
India’s reserves drop below $727 billion after two weekly declines
The rupee now depends more visibly on central bank support
The rupee now depends more visibly on central bank support
India’s fell by $8.578 billion to $726.027 billion in the week ended October 9, the second consecutive weekly decline. They had dropped $12.952 billion to $734.606 billion the previous week, after reaching a record $785.71 billion on September 4. The latest total is more than $59 billion below that peak.
The decline reflects several forces. fell by $10.664 billion and gold reserves by about $2.288 billion during the week ended October 2. The also sold roughly $7.5 billion net as it supplied dollars to support the rupee. Some changes came from shifts in exchange rates and gold prices, rather than money leaving the country. Reserves still provide a large cushion, covering months of imports and most external debt, so the fall alone does not signal a crisis. But continued intervention shows pressure on the rupee and could gradually reduce India’s protection against external shocks.
The latest data showed a cumulative decline of more than $59 billion from the September 4 record, but reserves still stood at $726.027 billion. The figures indicate sustained currency-market intervention and valuation changes, but the reserve fall alone does not establish an or show that India has lost broader .
Reserves decreased by a further $8.578 billion in the week ended October 9, reaching $726.027 billion. The decline was smaller than the previous week’s $12.952 billion fall, indicating a slower even as reserves continued to decline.
The RBI was reported to have sold roughly $7.5 billion net between September 25 and October 2 as it supplied dollars to the market and supported the rupee. Such intervention can reduce reserve holdings, although weekly reserve values also change because of exchange-rate and gold-price , not only outright sales.
Reserves fell another $12.952 billion to $734.606 billion in the week ended October 2. dropped by $10.664 billion to $604.747 billion, while also declined by about $2.288 billion.
Reserves declined by $18.343 billion in the week ended September 25, reaching about $747.557 billion. The move marked a sharp from the September record and was reported amid continuing pressure on the rupee.
India’s reached about $785.71 billion in the week ended September 4, establishing the baseline for the subsequent decline. The record provided a substantial starting cushion as the managed pressure on the rupee and maintained .