New Delhi, Nov. 8 -- India's foreign exchange reserves have declined for the second consecutive week, falling by $2.69 billion to $717.06 billion in the week ended 30 October 2026. The decline comes after reserves touched a record high of $785.71 billion in the week ended 4 September, raising questions about the factors driving the drawdown and its implications for the rupee and India's external financial position.

However, the latest decline does not necessarily indicate a deterioration in India's external finances. The movement reflects a combination of foreign exchange market intervention, the deployment of funds raised through FCNR(B) deposits and changes in the dollar value of reserve assets.

According to the Reserve Bank of India'...