Since the Ukraine crisis, about $80 billion in forex reserves have been lost.

Foreign exchange reserves have been at an almost two-year low for six weeks in a row.

India's foreign exchange assets have fallen by more than $80 billion since the Ukraine crisis, including more than $2 billion in the previous week as the Reserve Bank of India sold dollars to assist the rupee cross the 80-to-the-dollar level.

According to the most current weekly statistics from the RBI, foreign exchange reserves fell by $2.234 billion to $550.871 billion from $553.105 billion the previous week, the lowest level in more than two years.

Since Russia's invasion of Ukraine in late February, India's import coverage has fallen for six weeks in a row and 23 out of 29 weeks, owing to the RBI's continued withdrawal of reserves to fight a rise in the US dollar caused by capital outflows to dollar-denominated assets.

Foreign exchange reserves in the country have fallen by more than $90 billion since their peak in late October.

Despite a constant injection of foreign capital into the country's markets, a growing current account deficit has not been able to stem the fall in import coverage.

After the rupee fell sharply this year from over $74 to a weak record high of over 80 versus the dollar, the RBI intervened to regulate the currency from severe volatility swings.

The RBI's most recent monthly bulletin, which indicated that the central bank sold a net $19.05 billion in the spot currency market in July, provides some evidence for this.

The rupee market activity suggests that this pattern continued into August and the current month.

As the dollar continues to surge to record highs not seen in more than two decades against most major currencies, the nation's foreign exchange reserves are likely to be the dominant focus for the foreseeable future.

The rupee had its worst week in five on Friday, as the dollar reached a new high due to increased bets on the Federal Reserve raising interest rates, as well as warnings from the World Bank and International Monetary Fund about slowing economic growth and rising inflation.

According to a currency broker who spoke to Reuters, market participants were wary and saw 80 rupees to the dollar as a protective level.

Following a worldwide sell-off prompted by the broadest and most aggressive policy tightening in decades, Indian equities plunged into a market slaughter on Friday, wiping out the week's gains and extending losses for the third straight session.

This implies that the RBI will continue to withdraw reserves in order to protect the rupee against excessive volatility.

The strong dollar and widespread risk aversion are expected to have a negative impact on the rupee's trading behavior. According to Anuj Choudhary, a research analyst at Sharekhan by BNP Paribas, global markets fell after IMF spokesman Gerry Rice expressed concern about a further slowdown in the global economy and claimed that some nations will face recession by 2023.

Despite a significant decrease in forex reserves this year, the US has outperformed its competitors in emerging countries, where import coverage has reached crisis levels.

According to the most current RBI data, India's foreign exchange assets (FCA), which account for the majority of foreign exchange reserves, fell by $2.519 billion to $489.598 billion in the week ending September, down from $6.527 billion to $492.117 billion the previous week.

The value of the gain or depreciation of non-US currencies held in foreign exchange reserves, such as the euro, pound, and yen, is represented by foreign currency assets denominated in dollars.

The value of gold reserves, on the other hand, climbed by $340,000,000 to $38,644,000,000.

During the reporting week, SDRs fell by $63 million to $17.719 billion, but the country's reserve position with the IMF improved by $8 million to $4.91 billion.