Politics · India Bureau
India's forex reserves tumble $14.9 billion in sharpest weekly decline
Foreign currency assets fell sharply during the week ended September 18, marking the steepest weekly loss since November 2024. Analysts attribute much of the decline to active dollar sales by authorities.
LSN India ·
India's foreign currency reserves contracted by $14.9 billion during the week ended September 18, reflecting the most pronounced weekly drop since November 2024, according to data released this week.
The decline in foreign currency assets—which form the bulk of India's total forex reserves—stood at $14.8 billion. Economists tracking the movement attribute approximately $10.9 billion of this reduction to deliberate dollar sales, suggesting intervention by the Reserve Bank of India to stabilize the rupee amid market pressures.
The sharp weekly contraction underscores mounting external pressures on India's currency and balance of payments position. Dollar sales typically indicate central bank efforts to manage exchange rate volatility and support the rupee's stability in currency markets.
India's forex reserves remain substantial despite the recent drawdown, continuing to provide a critical buffer for the economy. The RBI has periodically intervened in forex markets to maintain orderly currency conditions while managing the broader macroeconomic implications of capital flows and external demand.