India FX reserves fall $50 billion from Sept peak to $734.6 billion
India's foreign exchange reserves fell for a fourth consecutive week to $734.6 billion, down about $50 billion from a September 4 peak due to RBI dollar sales to smooth the rupee's decline and FX swaps to absorb liquidity.
6 billion, according to a footnote to Reserve Bank of India Governor Sanjay Malhotra's statement. 71 billion on September 4, a decline of about $50 billion in less than a month. The drawdown reflects the RBI's dollar sales in the spot market to smooth the rupee's decline, alongside sell/buy FX swaps aimed at absorbing surplus liquidity. Despite the central bank's support, the rupee has continued to weaken, pressured by elevated oil prices, rising US Treasury yields and increased foreign equity outflows.
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