Strong dollar inflows under the Reserve Bank of India’s (RBI) concessional swap window, particularly the foreign currency non-resident (bank) – or FCNR (B) – deposits scheme, helped India’s foreign exchange reserves post their largest-ever weekly increase, rising by USD 44.9 billion to a record USD 785.7 billion in the week ending September 4.According to estimates, this surge propelled India above Russia to become the world’s fourth-largest holder of foreign exchange reserves, behind China, Japan, and Switzerland. In the week ending August 28, total reserves had reached a previous high of roughly USD 740 billion.Related News: India’s forex reserves hit record USD 740.8 billionHowever, the rupee is still under pressure; on Friday, it dropped for the fourth session in a row to end at 95.56 to the dollar from 94.45 due to pressure from rising crude oil prices and US Treasury yields.Dealers reported that it reduced losses following RBI intervention. Since the start of the conflict in West Asia, the rupee has lost 4.79 per cent of its value, and this month it has lost 0.4 per cent.According to the latest RBI data provided on Friday, foreign currency assets, which make up the majority of the FX reserves, increased by USD 47.5 billion to USD 648.17 billion during the week ending September 4.The impact of fluctuations in the value of non-US currencies held in the reserves, such as the euro, pound, and yen, is also reflected in the figure, which is expressed in dollars.In contrast, gold prices dropped 0.56 per cent to USD 4,429 an ounce during the week, causing gold reserves to drop by USD 2.59 billion to USD 113.81 billion.As more foreign currency inflows are expected to continue until the second week of September, market participants anticipate that foreign currency assets will increase even more, possibly surpassing USD 655 billion.By August 31, foreign currency inflows totaling USD 136.4 billion had been mobilized by the RBI’s exceptional swap operations. While external commercial borrowings and foreign currency bonds are still eligible under the facility until December 31, the window for FCNR (B) deposits ended on August 31. Up until September 11, banks may use the swap facility for deposits that have already been committed.