India's foreign exchange reserves fall to $734.6bn during RBI sales
Business
India's foreign exchange reserves have fallen for the fourth straight week, now sitting at $734.6 billion, down $50 billion since early September.
The Reserve Bank of India (RBI) has been selling dollars in the spot market to smooth the rupee's decline, alongside sell/buy FX swaps aimed at absorbing surplus liquidity, but rising oil prices and global money shifts are making things tough.
Rupee drops to 96.8450 per dollar
Even with the RBI's efforts, the rupee dropped nearly 0.5% on Wednesday to 96.8450 per dollar, just shy of its all-time low.
It's a sign that global pressures are weighing on India's currency, and the RBI has intervened in the market to support the rupee's value.