India’s Forex Reserves Fall by USD 7.79 bln to USD 690.693 bln Amid Currency and Gold Pressure

India’s foreign exchange reserves witnessed a sharp decline, falling by USD 7.794 billion to USD 690.693 billion for the week ended May 1, according to data released by the Reserve Bank of India.

This comes after a previous weekly drop of USD 4.82 billion , indicating continued pressure on the country’s external buffer amid global uncertainty and currency volatility.

The reserves had earlier touched an all time high of USD 728.494 billion in the week ended February 27, before geopolitical tensions in the Middle East triggered sustained market stress. Since then, the rupee has faced pressure, prompting the central bank to step in through dollar sales to stabilize volatility.

According to data from the Reserve Bank of India , the decline was led mainly by a fall in key components of the reserves.

Foreign currency assets , which form the largest share of the reserves, dropped by USD 2.797 billion to USD 551.825 billion . These assets are influenced not only by dollar movements but also by fluctuations in major global currencies such as the euro, pound, and yen.

Gold reserves saw a sharper fall, decreasing by USD 5.021 billion to USD 115.216 billion during the week. This decline weighed significantly on the overall reserves position.

In contrast, Special Drawing Rights (SDRs) rose slightly by USD 15 million to USD 18.789 billion , while India’s reserve position with the IMF increased marginally by USD 8 million to USD 4.863 billion .

Overall, the latest figures reflect continued volatility in India’s external account position, with global geopolitical tensions and currency movements continuing to shape the trend.