India's Forex Reserves Rise to USD 675.16 Billion on Higher Foreign Currency Assets

India's foreign exchange reserves rose by USD 964 million to USD 675.157 billion during the week ended July 10 , according to data released by the Reserve Bank of India (RBI) on Friday. The increase follows a sharp USD 7.26 billion rise recorded in the previous reporting week, when the country's overall forex reserves climbed to USD 674.193 billion .

Despite the latest gains, the reserves remain below their all-time high of USD 728.494 billion , recorded in the week ended February 27 . Since then, the reserve stockpile has witnessed periods of decline as geopolitical tensions arising from the West Asia conflict exerted pressure on the rupee, prompting the RBI to intervene in the foreign exchange market through dollar sales to stabilize the domestic currency.

According to the central bank's weekly statistical supplement, foreign currency assets (FCAs) —the largest component of India's forex reserves—rose by USD 930 million to USD 546.508 billion during the reporting week. FCAs are expressed in US dollar terms and reflect the impact of appreciation or depreciation in major non-US currencies, including the euro, pound sterling, and Japanese yen , held in the country's foreign exchange reserves.

Meanwhile, the country's gold reserves increased by USD 24 million to USD 105.223 billion , continuing to provide additional strength to India's external asset base.

The RBI also reported a marginal increase in Special Drawing Rights (SDRs) , which rose by USD 3 million to USD 18.626 billion . India's reserve position with the International Monetary Fund (IMF) also improved, increasing by USD 7 million to USD 4.793 billion during the week.

The steady rise in foreign exchange reserves is seen as a positive indicator for the economy, providing a stronger buffer against external shocks, supporting currency stability, and enhancing investor confidence amid ongoing global economic and geopolitical uncertainties.