Forex reserves fall $18.34 billion in a week as the RBI defends the rupee
India's foreign exchange reserves fell by $18.34 billion in the week to 25 September, the third straight weekly decline, as the RBI sold dollars to defend the rupee. One report puts the total at $747.6 billion. Another recent report cites a lower figure of about $734 billion, against a peak near $785 billion, without naming the week. The rupee was at 96.30 on Monday.
Reserves are the RBI's ammunition. The faster they fall, the sooner it must choose between letting the rupee go and raising rates.
A weaker rupee raises the price of imported fuel, gold and electronics, and of overseas education.
Reserves of $730–750 billion still cover many months of imports, so this is a cost, not a crisis. The trend line, not the level, is what to watch.
DailyDrop India edition No. 1 · Morning · MON., OCT. 5, 2026