India’s foreign exchange reserves declined by USD 2.699 billion in the week that ended November 7 to USD 687.034 billion, driven by a slump in both foreign currency assets and gold reserves, the Reserve Bank of India’s latest ‘Weekly Statistical Supplement’ data showed.
Over the past month, the forex kitty has been in a downtrend, except for one week. Still, the country’s foreign exchange (forex) kitty is hovering close to its all-time high of USD 704.89 billion, reached in September 2024. For the reported week (that ended November 7), India’s foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 562.137 billion, down USD 2.454 billion.
The RBI data showed that gold reserves currently stand at USD 101.531 billion, down USD 195 million from the previous week. The price of the safe-haven asset gold has been on a sharp uptrend over recent months, perhaps amid heightened global uncertainties and robust investment demand.
After the latest monetary policy review meeting, RBI had said that the country’s foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports. Overall, India’s external sector continues to be resilient, and the RBI remains confident of meeting its external obligations comfortably.
In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022. In 2024, the reserves rose by a little over USD 20 billion. So far in 2025, the forex kitty has cumulatively increased by about USD 37-38 billion, data showed.
Foreign exchange reserves, or FX reserves, are assets held by a nation’s central bank or monetary authority, primarily in reserve currencies such as the US dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling.
The RBI often intervenes by managing liquidity, including selling dollars, to prevent steep depreciation of the rupee. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens.
India’s currency rupee, may finally have bottomed out after a persistent weakness, according to Jefferies. In its latest GREED & fear report, the global financial services firm highlighted a “growing likelihood that the rupee has bottomed” following its months-long depreciation. The Indian currency, Jefferies noted in the report, has been “the worst performer year to date amongst major emerging market currencies,” having declined 3.4 per cent in 2025 to trade near Rs 88.7 per US dollar.
