The decline accelerated on Wednesday, with the currency falling nearly 0.5% to 96.8450 per dollar, within sight of its all-time low of 96.96
India's foreign exchange reserves fell for a fourth consecutive week to $734.6 billion, according to a footnote to Reserve Bank of India Governor Sanjay Malhotra's statement.
The reserves have dropped from their recent peak of $785.71 billion on September 4, a decline of about $50 billion in less than a month.
The drawdown reflects the RBI's dollar sales in the spot market to smooth the rupee's decline, alongside sell/buy FX swaps aimed at absorbing surplus liquidity.
Despite the central bank's support, the rupee has continued to weaken, pressured by elevated oil prices, rising US Treasury yields and increased foreign equity outflows.