India’s Forex Reserves Rise to $682.32 Billion Despite Decline in Gold Holdings

Foreign exchange reserves of India has a fresh increase during the week was ended on May 29th, 2025 and it showcased the continued resilience in the country’s external sector. As per the latest data by the Reserve Bank of India (RBI), the country’s reserves rose by $938 million to reach $682.321 billion. This increase primarily driven by the foreign currency assets and gold reserves witnessed the decline.

India’s Forex Reserves Increase to $682.3 Billion

The Reserve Bank of India reported that the India’s total foreign exchange reserves was increased by $938 million during the latest reporting week.

The reserves stood at the,

• Previous Week: $681.384 billion
• Current Week: $682.321 billion
• Weekly Increase: $938 million

The rise follows the significant decline of the $7.511 billion recorded in the previous week. Despite recent fluctuations India’s forex reserves remain among the largest in the world and it providing the buffer to the emergency external shocks.

Foreign Currency Lead the Growth

Foreign Currency Assets (FCAs), which form the largest part of the India’s forex reserves and it recorded a substantial increase.

According to RBI data,

• FCAs increased by the $3.116 billion
• Total FCAs reached to the $546.148 billion

Foreign currency assets also include the holdings in major international currencies such as the,

• US Dollar
• Euro
• British Pound
• Japanese Yen

Gold Reserves Witness Decline

While the foreign currency assets had been increased, India’s gold reserves declined during the reporting week.

Gold Reserve Position

• Gold Reserves Declined By: $2.186 billion
• Total Gold Reserves Stood At: $112.6 billion

The decline in the gold reserves was primarily due to changes into the international gold prices and valuation effects.

SDRs and IMF Reserve Position

The RBI data has also provided the details regarding other components of the forex reserves.

Key Components

While the SDR holdings remained unchanged and India’s reserve position with the International Monetary Fund (IMF) increased slightly by around the $8 million.

Impact of the West Asia Crisis on the Forex Reserves

India’s forex reserves had touched the historic high of $728.494 billion during the week which was ended on February 27, 2026.

However, the outbreak of conflict in the West Asia led to the,

• Pressure on the Indian rupee
• Increased crude oil prices
• Higher import costs
• RBI intervention in forex markets

To stabilize the Indian rupee, the RBI sold US dollars from its reserves and leading to the several weeks of decline in the forex kitty.