RBI Forex Reserves Crash $50 Billion In A Month! Why Is The Rupee Still Under Pressure?

India's foreign exchange reserves have witnessed a massive decline, with over $50 billion wiped out in less than a month. The RBI recorded its biggest-ever weekly forex reserve drop of $18 billion in the week ended September 25, raising fresh concerns about the falling rupee. Despite a strong response to the FCNR(B) scheme, which helped boost India's forex reserves by around $140 billion, the rupee continues to face pressure. Analysts point to RBI's dollar sales, forex swaps, foreign investor outflows, expensive crude oil and gold imports, and foreign currency loan obligations as key factors behind the pressure on reserves. RBI Governor Sanjay Malhotra appeared relatively unconcerned about the decline after announcing the first interest rate hike in 45 months on October 7. So, where did $50 billion go? Can the RBI protect the rupee from further depreciation? Watch this BTTV report for the full analysis.