Forex reserves continue to fall, kitty now over 10 per cent below its peak

The RBI often intervenes by managing liquidity, including selling dollars, to prevent steep Rupee depreciation. The RBI has strategically bought dollars when the Rupee is strong and sold when it weakens, enhancing the appeal of Indian assets to investors.

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India's foreign exchange reserves continue to decline, extending their slump for about four months now. The country's forex reserves have fallen in 15 of the past 16 weeks, hitting an 11-month low.

In the week ending January 17, India's foreign exchange reserves declined by $1.88 billion to $623.983 billion, according to the latest data from the Reserve Bank of India (RBI).

The reserves have been falling ever since they touched an all-time high of $704.89 billion in September, and they are now over 10 percent lower than the peak.