India’s Forex Reserves Decline by $18.3 Billion to $757.46 Billion

 India’s foreign exchange reserves declined by approximately $18.34 billion to $757.46 billion in the week ended September 25, according to data released by the Reserve Bank of India (RBI). The sharp decline came amid pressure on the Indian rupee and central bank intervention in the foreign exchange market.

The latest fall was the largest weekly decline on record in data compiled by Bloomberg, according to a report by Business Standard. India’s forex reserves had stood at $765.90 billion in the previous reporting week.

Foreign Currency Assets Lead the Decline

Foreign currency assets (FCAs), the largest component of India’s foreign exchange reserves, accounted for most of the reduction. FCAs fell by approximately $15.57 billion to $615.41 billion during the reporting week, RBI data showed.

Gold reserves also declined by around $2.59 billion to $108.70 billion. Special Drawing Rights (SDRs) held by India fell by $97 million to $18.64 billion, while the country’s reserve position with the International Monetary Fund (IMF) decreased by $86 million to $4.80 billion.

Foreign currency assets are reported in US dollar terms. Their value can change because of exchange-rate movements in currencies such as the euro, pound and yen, as well as changes in asset valuations.

RBI Intervention Amid Rupee Pressure

The decline in reserves came as the RBI intervened in the foreign exchange market to manage volatility and limit the rupee’s depreciation. Central bank dollar sales can reduce the level of foreign exchange reserves, while currency movements and valuation changes can also affect the reported total.

The rupee had faced pressure from elevated crude oil prices, higher US Treasury yields and foreign investment outflows. These factors have increased demand for dollars and complicated efforts to stabilise the domestic currency.

India’s dependence on imported crude oil makes the economy particularly sensitive to higher global energy prices, which can increase the import bill and add to demand for foreign currency.

Reserves Remain an Important Economic Buffer

Foreign exchange reserves provide a cushion against external shocks and help meet international payment obligations. They also strengthen confidence in a country’s ability to manage periods of currency-market volatility.

India’s reserves had reached a record high of approximately $785.71 billion in the week ended September 4, 2026. The subsequent decline reflected the combined impact of market intervention and valuation movements, according to market analysts cited in media reports.

However, a fall in reserves does not, by itself, indicate a deterioration in the country’s overall economic position. The pace of future changes will depend on foreign exchange market conditions, capital flows, oil prices and the RBI’s policy actions.

Source: Reserve Bank of India data; Business Standard and Moneycontrol reports published October 2, 2026.