India’s forex reserves fall $11.68 billion to $716.81 billion, biggest drop in over a year

Declining forex reserves and RBI intervention signal rupee weakness, which can impact inflation, import costs, and FII sentiment.

• •India’s forex reserves fell $11.68 billion to $716.81 billion.
• •This is the biggest drop in over a year.
• •The decline is attributed to RBI's dollar sales to defend the rupee.
• •Increased yields in the U.S. are highlighted as a factor.
• •Risk flag: Further rupee depreciation