The RBI’s weekly statistical bulletin announced a $14.9 billion dip in the country’s foreign exchange reserves, bringing the total down to $765.9 billion. The swing was almost entirely driven by a $14.8 billion fall in foreign currency assets, which now sit at $631 billion. Gold holdings edged up by $68 million to $111.3 billion, while special drawing rights slipped by $106 million to $18.7 billion. The IMF position fell a modest $27 million, settling at $4.9 billion.
This drop comes after a streak of accumulation that saw reserves climb by $74.8 billion since the end of March 2026. Year‑on‑year, the reserves have grown by $63.3 billion, underscoring a stronger net inflow of foreign currency.
Bankers point to the RBI’s dollar sales as a likely culprit, a move aimed at bolstering the rupee against a rallying dollar. Shifts in the valuation of the dollar, euro, and yen also feed into the dollar‑denominated reserve figure.
The RBI’s policy room remains wide, but the recent dip signals a possible tightening of currency interventions ahead of the upcoming monetary policy meeting. Analysts expect the central bank to signal further dollar sales or adjust its repo rates in a bid to tame volatility.
Market watchers will be eyeing next week’s data release on September 25, where the RBI is expected to detail the impact of the intervention on the rupee’s exchange rate.