India's foreign reserves have dropped to a four-month low, falling $867 million to $593.037 billion, according to RBI data.

According to Reserve Bank of India (RBI) data released on Friday, September 22, India's foreign exchange (forex) reserves decreased for a second consecutive week and were down to a nearly four-month low of $593.037 billion as of September 15 - a decline of $860 million from the previous week. The aggregate reserves decreased by $4.99 billion to $593.90 billion during the preceding reporting week.

As the central bank deployed its resources to protect the rupee against pressures, primarily brought on by global events since last year, the reserves were drained. The central bank intervenes in the spot and forwards markets to prevent the rupee from experiencing excessive movements. 

According to dealers cited in a report by news agency Reuters, the RBI has likely been selling dollars via public sector banks during the past several trading sessions to stop the rupee from falling to a record low. The nation's reserves reached an all-time high of $645 billion in October 2021.

According to the Weekly Statistical Supplement published by the RBI, the foreign currency assets, a significant part of the reserves, declined by $511 million to $525.915 billion for the week ended September 15.

In dollar terms, foreign currency assets comprise the value of the gain or depreciation of non-US currencies held in foreign exchange reserves, such as the euro, pound, and yen. According to the RBI, the value of gold reserves has decreased by $384 million to $44 billion. According to the central bank, the Special Drawing Rights (SDRs) increased by $32 million to $18.092 billion. 

India's Reserve Tranche holdings at the International Monetary Fund (IMF) are included in the country's foreign exchange reserves. In the reporting week, the nation's reserve position with the IMF decreased $4 million to $5.03 billion. 

The rupee decreased somewhat against the US dollar during the week to which the data on foreign exchange reserves is relevant, trading between 82.8225 and 83.1850. On Friday, the rupee reached 82.93 and broke a three-week losing skid. 

On predictions that the US Federal Reserve will keep rates higher for longer, the US dollar index rose to 105.74, its highest level in more than six months, and the yield on the US 10-year Treasury increased to 4.50 percent, its highest level since 2007.