in the week ended July 8, foreign exchange reserves fell $8.06 billion to $580.02 billion in the wake of the dollar's appreciation and capital outflows from india, triggered by rising inflation and rate hikes in the united States.

As the U.S. Federal Reserve tightened monetary policy and raised interest rates, capital outflows from foreign portfolio investors were seen.As a result, foreign exchange reserves fell by $62.4 billion from the record level of $642.45 billion on September 3, 2021. The rupee is depreciating and adjusting to other currencies so that exports can become competitive.

However, while the value of the rupee has fallen in recent weeks to 79.88 against the dollar on Friday, the RBI has reportedly prevented the rupee from falling below 80 by selling dollars in the last two days. It should be noted that the U.S. currency gained even as annual U.S. consumer prices jumped 9.1 percent in June, the highest in four decades, beating expectations for an 8.8 percent rise.