RBI Sold Billions. The Rupee Still Fell. Why?

Описание: Between April 2025 and March 2026, the Reserve Bank of India intervened heavily in the foreign exchange market, selling billions of dollars from India's reserves in an attempt to slow the Rupee's decline. Yet despite these efforts, the Rupee emerged as one of the worst-performing major Asian currencies during FY2025-26.

So what went wrong?

In this episode of To The Point with Anand Vardhan Singh, we examine the numbers behind India's currency story. Using RBI data, foreign exchange reserve reports, and international currency comparisons, we analyse how the Indian Rupee performed against the US Dollar compared with the Chinese Yuan, Malaysian Ringgit, Singapore Dollar, Thai Baht, Taiwanese Dollar, Japanese Yen, South Korean Won, Indonesian Rupiah and Vietnamese Dong.

We also investigate the growing controversy surrounding India's gold reserves. Bloomberg Economics raised questions after unusual movements appeared in RBI reserve data, leading to speculation that gold may have been used as part of reserve management operations. The RBI has denied selling physical gold, but does the available data fully explain what happened?

This discussion goes beyond exchange rates. A falling currency affects inflation, fuel prices, imports, education costs abroad, foreign travel, and ultimately the purchasing power of ordinary Indians. We also connect the currency story to a broader crisis of confidence reflected in recurring controversies such as NEET, UGC-NET and CBSE paper leaks.

Was the Rupee's decline inevitable? Did RBI intervention prevent an even bigger fall? Why did several Asian currencies strengthen while India struggled? And what do the latest reserve figures tell us about the state of the Indian economy?

Watch the full analysis as we separate facts from narratives and ask a simple question:

If billions were spent defending the Rupee, why did it still end up among Asia's weakest performers?

Source Data: RBI, XE Currency Tables, Bloomberg Economics, IMF, Reuters

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