India's Forex Reserves Dip Amid Gold Plunge

India's foreign exchange reserves decreased by $1.27 billion in the week ending October 30, 2026, reaching a total of $719.75 billion. This reduction was primarily driven by a sharp decline in the value of gold reserves, which fell by $2.65 billion during the same period. The overall reserves have been on a declining trend since touching a record high of $785.706 billion in the week of September 4, 2026.

Experts suggest that the deployment of FCNR(B) resources and the Reserve Bank of India's (RBI) interventions to defend the currency contributed to this decrease. While gold reserves dropped, foreign currency assets, a major component of the reserves, saw an increase of $1.358 billion, reaching $593.205 billion for the week ending October 23, 2026. Special Drawing Rights (SDRs) also saw a marginal increase, while the reserve position with the IMF slightly decreased.