India’s foreign exchange reserves fell by $14.88 billion to $765.9 billion in the week of Sept. 18, the largest decline since November 2024. The Reserve Bank of India sold dollars to support the rupee amid surging oil prices and foreign outflows from local stocks. The currency is among the worst performers in Asia this year, weighed by the prolonged Middle Eastern war.

Despite measures like a special deposit program for overseas citizens that raised $143.6 billion, the rupee remained under pressure. The central bank also conducted sell-buy swaps to drain cash from banks, further impacting reserves. These transactions involve the RBI selling dollars to banks for rupees and agreeing to buy the US currency back later.