India's foreign exchange reserves dip by $4.9 billion to $780.8 billion

India's foreign exchange reserves contracted by $4.9 billion, reaching $780.8 billion in the week ended September 11, marking the first fall after ten weeks of growth. The previous week had seen a historic $44.9 billion jump to a record $785.7 billion, fueled by robust foreign currency inflows through the RBI's concessional swap window. In the latest week, foreign currency assets declined $2.4 billion to $645.8 billion and gold reserves slipped $2.6 billion to $111.2 billion.

Special drawing rights with the IMF rose modestly by $39 million to $18.8 billion, and India's reserve position with the IMF grew $60 million to $4.9 billion. The fall follows $136.4 billion of foreign currency inflows mobilised under the RBI’s special swap measures by August 31, with the FCNR(B) deposit window now closed and swaps still available until September 11. Analysts noted that a stronger dollar, higher US yields, and RBI dollar-selling swaps likely contributed to the reduction.