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

Bankers estimate that the Reserve Bank of India has used roughly half of a $140 billion foreign exchange capital haul to defend the rupee, according to Reuters. The figure is an estimate rather than an official disclosure, which makes it a useful signal of scale rather than a precise accounting of reserves.

The RBI does not publish intervention data in real time, so market participants infer the pace of dollar sales from changes in reserves and price action. If the estimate is broadly right, it implies the central bank has drawn down a meaningful buffer during the current bout of currency pressure.

For markets, the key question is sustainability. A large stock of reserves gives the RBI room to smooth volatility, but heavy and sustained selling can eventually narrow that cushion. Traders will therefore watch reserve disclosures, the rupee's trading range, and whether intervention slows if global dollar strength eases.