India's foreign exchange reserves fell for a fourth consecutive week to
$734.6bn, about $50bn below the Sept. 4 peak of $785.7bn, Reserve Bank of India
governor Malhotra said. The drop reflects RBI spot-dollar sales to limit rupee
weakness and sell/buy foreign exchange swaps to absorb excess liquidity. Despite
intervention, the rupee remains under pressure from high oil prices, rising US
Treasury yields and foreign equity outflows.
