India's RBI has spent half of $140 billion FX capital haul in rupee defence, bankers estimate - Reuters

India's central bank has drawn down roughly half of a $140 billion foreign exchange capital haul accumulated in recent years, according to banker estimates cited by Reuters, as it works to slow the rupee's depreciation. The Reserve Bank of India does not publicly disclose the pace of its intervention, so the figure reflects market participants' inferences from reserves data and price action rather than an official tally.

The scale matters because reserves are the first line of defence for a currency under pressure. A shrinking buffer can signal that policymakers are willing to spend heavily to smooth volatility, but it also raises questions about how much ammunition remains if depreciation pressures persist. Markets typically watch weekly reserves data, the rupee's trading range, and any signs of tighter liquidity for clues about the RBI's stance.

For observers, the key takeaway is not a specific level but the trend: how quickly reserves are being used and whether intervention is merely curbing sharp moves or resisting a broader adjustment. That distinction shapes expectations for the rupee, domestic rates, and imported inflation.