Forex reserves plunge record $18.3 billion as RBI steps in to support rupee
Mint 41 min ago·2 Oct 2026, 4:27 pm
India’s foreign‑exchange reserves shrank sharply last week, falling by about $18.3 billion to roughly $747.6 billion – the biggest weekly drop ever recorded. The Reserve Bank of India stepped in to sell dollars and buy rupees, a move aimed at stabilising the currency after a sudden outflow of foreign capital.
For investors, the plunge signals heightened pressure on the rupee, which can affect the cost of imported goods, corporate earnings that rely on foreign currency, and overall market sentiment. A weaker rupee may boost export‑oriented stocks but can also raise inflation concerns and squeeze profit margins for companies with dollar‑denominated debt.
Going forward, market participants will be watching RBI’s intervention pattern, any further shifts in the dollar‑rupee rate, and macro‑economic data such as trade balances and inflation. Global cues, especially US monetary policy and oil prices, will also shape the trajectory of reserves and currency stability.
Excerpt from Mint
Reserves fell $18.34 billion to $747.56 billion in the week of Sept. 25, data released on Friday showed. This is the biggest fall in a week on record. India’s foreign exchange reserves dropped the most on record as the central bank’s support for the rupee weighed on the stockpile. Reserves fell $18.34 billion to…Read the original at Mint
Key takeaways
- Category: Forex.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
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