The foreign exchange reserves fell to $537.52 billion in the week through Sept. 23, notching their steepest weekly fall in six months, the Reserve Bank of India's weekly statistical supplement showed on Friday.
The country's reserves were $545.65 billion at the end of the previous week. Reserves have now fallen for eight straight weeks and are near their lowest levels since August 2020.
About 67% of the drop in reserves during the current financial year was due to valuation changes as the U.S. dollar strengthened, RBI governor Shaktikanta Das said in his monetary policy speech earlier in the day.
The rupee closed at 81.34 per dollar on Friday, rebounding from record lows during the week as the RBI intervened multiple times, according to traders, to stem the volatility in the currency markets.