Overview
- The Reserve Bank of India reported a $14.88 billion decline in total foreign exchange reserves to $765.9 billion for the week ended September 18, 2026.
- Foreign currency assets, the largest reserve component, fell by about $14.82 billion to roughly $631.0 billion while the value of gold rose by about $68 million.
- Market analysts and dealers attribute the move to RBI intervention including spot, forward and swap dollar sales plus valuation losses from non‑US currency moves.
- Traders pointed to higher crude prices and rising US Treasury yields as pressures that prompted RBI action and put strain on the rupee and reserve valuation.
- The fall follows a record reserve peak in early September driven by inflows through the FCNR(B) swap scheme, reducing the recent reserve buffer and narrowing RBI’s room for further interventions.