India's forex reserves fall to $734.6 billion amid FCNR outflows and RBI dollar sales

India's forex reserves have declined to $734.6 billion in the week ended October 2, marking the fourth straight week of decline. The reserves have fallen significantly from a recent peak of $785.71 billion recorded on September 4, according to data released in RBI Governor Sanjay Malhotra's monetary policy statement on Wednesday.

The fall in reserves reflects a combination of factors, including a drying up of Foreign Currency Non-Resident (FCNR) account inflows and continued dollar sales by the Reserve Bank of India. The RBI released the latest reserve numbers ahead of the originally scheduled disclosure date of October 9.

The sustained decline in forex reserves underscores pressures on India's external position and the central bank's interventions in currency markets.