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India's Forex Reserves Surge to $693.6B Amid Dollar Decline
16 Aug
Summary
- India's forex reserves rose by $4.7 billion to $693.6 billion
- Increase driven by revaluation gains from weaker dollar and higher gold prices
- RBI's market intervention, including $5 billion in FX swaps, partially offset the gains
In the week ending August 8, 2025, India's foreign exchange reserves have increased by $4.7 billion, reaching a total of $693.6 billion, according to data released by the Reserve Bank of India (RBI). This rise was primarily driven by revaluation gains resulting from a weaker US dollar and higher gold prices during the week.
However, the gains were partially offset by the RBI's market intervention, which included the delivery of $5 billion in foreign exchange (FX) swaps. The central bank's stated stance has been to intervene in the market only to maintain orderly conditions and contain excessive volatility in the exchange rate.
Prior to this increase, India's foreign exchange reserves had fallen by $9.3 billion in the previous week ending August 1, 2025, as the RBI likely intensified efforts to curb the rupee's slide against the US dollar. The latest data shows that foreign currency assets, which make up over 84% of the total reserves, rose by $2.4 billion during the week to August 8, 2025.
