India's foreign exchange reserves declined for the fourth consecutive week, dipping to $734.6 billion, according to Jin10. The level sits about $50 billion below the peak of $785.71 billion reached on September 4.

A note in RBI Governor Malhotra's statement attributes the decline to the central bank's dollar sales in the spot market to curb the rupee's slide, along with foreign-exchange swap operations to absorb excess liquidity.

Even with RBI support, the rupee continued to weaken as elevated oil prices, rising U.S. Treasury yields, and foreign outflows from stocks weighed on sentiment.