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Gold reserves also contribute to the rise, increasing by $428 million to reach $86.32 billion.
India’s Latest Forex Reserves.
India’s foreign exchange reserves jumped by $2.3 billion to $698.9 billion for the week ended June 13, 2025, according to data released by the Reserve Bank of India (RBI) on June 20. This comes after a rise of $5.17 billion in the previous week, when the reserves had stood at $696.65 billion. The current level is inching closer to the all-time high of $704.89 billion recorded in end-September 2024.
The increase in the latest week was mainly due to a $1.74 billion rise in foreign currency assets, which make up the largest component of the reserves and include the impact of movements in non-dollar currencies like the euro, pound and yen.
Gold reserves also contributed to the rise, increasing by $428 million to reach $86.32 billion.
The share of gold maintained by the RBI in its kitty has almost doubled since 2021, as central banks globally have increasingly accumulated safe-haven gold in their forex reserves.
In 2023, India added around $58 billion to its foreign exchange reserves, contrasting with a cumulative decline of $71 billion in 2022. In 2024, the reserves rose by a little over $20 billion.
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.
Special Drawing Rights (SDRs) rose by $85 million to $18.76 billion during the week ended June 13, while India’s reserve position with the International Monetary Fund (IMF) went up by $43 million to $4.45 billion.
The RBI often intervenes by managing liquidity, including selling dollars, to prevent steep Rupee depreciation. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens.
During the previous monetary policy announcement, RBI Governor Sanjay Malhotra said the foreign exchange kitty is sufficient to meet 11 months of the country’s imports and about 96 per cent of external debt.
A rise in forex reserves also boosts the rupee by boosting India’s external financial position.
Rupee’s Current Level
The rupee on June 20 snapped its three-day losing streak and settled with a gain of 18 paise at 86.55 against the US dollar, buoyed by a massive inflow of foreign capital, retreating crude oil prices and a weakening greenback.
A robust sentiment in domestic equity markets further supported the local unit, according to forex traders.
At the interbank foreign exchange, the domestic currency opened at 86.65 and traded in a narrow range of 86.55-86.67, before ending the session at its intra-day peak of 86.55 against the US dollar, registering a gain of 18 paise from previous closing level.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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