India’s Forex Reserves Fall by $2.7 Billion to $687 Billion Amid Drop in Currency Assets and Gold

New Delhi — India’s foreign exchange reserves declined by USD 2.699 billion, falling to USD 687.034 billion for the week ending November 7, according to the Reserve Bank of India’s (RBI) latest Weekly Statistical Supplement. The drop was primarily driven by a fall in foreign currency assets (FCA) and gold reserves.

The forex reserves have shown a largely downward movement over the past month, except for a brief uptick in one week. Despite this, the reserve levels remain close to the all-time high of USD 704.89 billion, recorded in September 2024.

In the latest week, foreign currency assets, which form the largest component of the reserves, dipped by USD 2.454 billion, settling at USD 562.137 billion. Meanwhile, gold reserves fell by USD 195 million to USD 101.531 billion, even as global gold prices continue to rise amid heightened geopolitical uncertainty and strong investor demand.

Following its recent monetary policy review, the RBI stated that India’s foreign exchange reserves are adequate to cover more than 11 months of merchandise imports, reinforcing confidence in the country’s external sector stability.

India posted strong reserve gains in the past two years—adding USD 58 billion in 2023 and more than USD 20 billion in 2024. In 2025 so far, the forex kitty has increased by USD 37–38 billion, the data showed.

Foreign exchange reserves typically comprise assets held in major global currencies like the US dollar, euro, yen, and pound sterling. The RBI actively manages the reserves, buying dollars when the rupee strengthens and selling when it weakens to curb excessive volatility.

Global financial services firm Jefferies, in its latest GREED & fear report, indicated that the Indian rupee may have finally bottomed out after months of depreciation. The rupee has weakened 3.4 per cent in 2025, making it the worst-performing major emerging market currency this year, trading close to ₹88.7 per US dollar.