This marks a decline of $9.3 billion from the previous week
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India’s foreign exchange reserves fell by more than $9 billion last week, likely reflecting the central bank’s efforts to shore up the rupee amid U.S. threats of steep tariffs on the Asian nation’s exports.
Reserve Bank of India Governor Sanjay Malhotra said in his monetary policy statement on Wednesday that India’s foreign exchange reserves stood at $688.9 billion as of August 1, which marks a decline of $9.3 billion from the previous week.
The fall was likely driven by the RBI’s dollar sales to support the rupee, which came under pressure after U.S. President Donald Trump imposed 25% tariffs on Indian goods and warned of further penalties over the country’s continued purchases of Russian oil, economists said.
“The reserves money data later today will likely confirm that,” an economist at a private sector bank, who did not wanted to be quoted on this matter, said.
Published on August 6, 2025
