India's fell for the third week in a row to hit an eleven-week low of $561.27 billion as of February 17, the Reserve Bank of India's RBI data supplement showed on Friday.
The reserves fell by $5.68 billion at the end of last week, according to the data.
The reserves were $566.95 billion in the week to February 10, down $8.3 billion from the previous week.
The central bank intervenes in the spot and forwards market to prevent exchange rate volatility. The RBI has stated in the past that changes in reserves are also related to valuation gains or losses.
The RBI is intervening in both the offshore and onshore markets to protect themselves from the fallout of investors who were expecting the U.S. Federal Reserve's terminal rate, according to a report by Reuters earlier this week.
The dollar was down 0.4% last week, logging its fourth consecutive weekly decline, but outperformed its Asian peers last week. The local currency traded in a range of 82.5750 to 82.8975 last week.
The week ended at 82.75, which was little changed against the dollar.