India, Feb. 3 -- In recent months, India's foreign exchange reserve management has attracted global attention.

Data reveals that the Reserve Bank of India (RBI) has reduced holdings of US Treasury bonds to the lowest level in five years, trimming exposure to dollar-denominated assets while strengthening other components of its reserves.

This strategic pivot has sparked questions about whether India is charting a gradual shift away from heavy reliance on the US dollar.

US Treasury bonds are regarded as the safest benchmark asset as they are backed by the full faith and credit of the US government, making them virtually risk-free. They therefore serve as the global "risk-free rate", against which other investments-from corporate bonds an...