Forex Reserves in India: The country’s foreign exchange reserves have declined by $6.92 billion to $695.35 billion in the week ending October 24. Reserve Bank of India (RBI) gave this information on Friday. In the previous week, foreign exchange reserves had increased by $ 4.49 billion to reach an all-time high of $ 702.28 billion.

Where did the decline come from?

According to RBI data, the largest part of foreign exchange reserves i.e. Foreign Currency Assets declined by $ 3.86 billion to $ 566.54 billion. Apart from the dollar, these assets also include the impact of price changes in other currencies like euro, pound and yen. During the week under review, gold reserves decreased by $ 3.01 billion to $ 105.536 billion. Apart from this, Special Drawing Rights (SDR) also declined by $58 million to $18.66 billion.

However, during the same period, India’s reserves in the International Monetary Fund (IMF) increased by $ 6 million to $ 4.608 billion. According to experts, this decline in foreign exchange reserves is mainly due to fluctuations in other major currencies against the dollar and the intervention of RBI.

Rupee stable at 88.69 against dollar

On Friday, the Indian rupee closed stable at 88.69 (provisional) against the US dollar after minor fluctuations throughout the day. Weakness in the domestic stock markets and the strength of the American currency were the main reasons for this. The rupee opened at 88.60 per dollar in the interbank foreign exchange market and touched a high of 88.59 and a low of 88.78 during trading. In the end it remained stable at its previous closing level of 88.69 per dollar. On Thursday, the rupee fell by 47 paise and closed at the same level.

The dollar index, which shows the position of the dollar against six major currencies, reached 99.39 with a slight increase of 0.04 percent. There was weakness in the domestic stock markets too – Sensex fell 465.75 points to 83,938.71 points and Nifty fell 155.75 points to close at 25,722.10 points. In the international market, Brent crude, the standard of crude oil, declined by 0.68 percent to $ 64.56 per barrel. At the same time, according to stock market data, foreign institutional investors (FIIs) were sellers on Thursday and made a net sale of shares worth Rs 3,077.59 crore.

Read this also: Market fell for the second consecutive day, Sensex closed down by 466 points, but there was a rise in these shares.

This news is a bit disappointing for the government which is trying to boost the country’s economy. There has been a decline in India’s foreign exchange reserves amid dealing with the challenges of American high tariffs. In the week ending October 3, this reserve decreased by $ 276 million to $ 699.96 billion. Information in this regard was given by the Reserve Bank of India (RBI) on Friday.

reduction in foreign exchange reserves

Even in the previous week, India’s total foreign exchange reserves had declined by $2.33 billion to $700.24 billion. According to the RBI, foreign currency assets — a major component of total reserves — declined by $4.05 billion to $577.71 billion in the week ended October 3. These assets, expressed in dollar terms, are also affected by fluctuations in the value of other currencies such as the euro, pound and yen.

However, during the same period, the country’s gold reserves increased by $3.75 billion to reach $98.77 billion. Apart from this, Special Drawing Rights (SDR) also increased by $ 25 million to $ 18.81 billion, while India’s reserves with the International Monetary Fund (IMF) decreased by $ 4 million to $ 4.66 billion.

Rupee strengthened

Rupee showed slight strength in the foreign exchange market. On Friday, the rupee closed with a gain of 10 paise at 88.69 per dollar (provisional). The rupee got this support from the strength in domestic stock markets and fall in crude oil prices. According to foreign exchange traders, RBI intervention also supported the rupee. However, the strength of the US dollar limited the rise of the rupee. The rupee kept trading in the range of 88.50 to 88.80 throughout the day.

Market and investors situation

There was an atmosphere of strength in the stock markets.

BSE Sensex rose 328.72 points to close at 82,500.82.

Nifty 50 closed at 25,285.35, up 103.55 points.

Foreign institutional investors (FIIs) were also buyers and bought shares worth Rs 1,308.16 crore. Meanwhile, the dollar index, which gauges the dollar’s strength against six major currencies, fell 0.21% to 99.32. At the same time, Brent crude oil futures prices declined by 0.61% to $ 64.85 per barrel. Overall, even though there has been a slight decline in foreign exchange reserves, the position of the Indian economy currently remains balanced due to the strong domestic market, foreign investment and stability of the rupee.

Also read: Is it a share or a gold mine? 1 lakh converted into 1.14 crore in 5 years, 11300% return in 9 months

India Forex Reserves: India’s foreign exchange reserves have increased by $ 1.48 billion to $ 695.10 billion in the week ended on August 15. It had increased by $ 4.74 billion in the last week and reached $ 693.61 billion.

The largest part of the foreign exchange reserves i.e. Forex assets rose $ 1.92 billion to $ 585.90 billion this week. It also includes the effect of fluctuations of non-American currencies like euro, pounds and yen.

The country’s treasure filled

At the same time, the gold reserves have come down by $ 49.3 million to $ 85.66 billion. Apart from this, the Special Drawing Rights (SDR) increased by $ 4.1 million to $ 18.78 billion and India’s reserved reserves with the International Monetary Fund (IMF) have increased by $ 1.5 million to $ 4.75 billion.

What is the condition of Pakistan

On the other hand, in Pakistan too, there has been a mild improvement in foreign exchange reserves. State Bank of Pakistan’s holding has increased by $ 1.3 million to $ 14.256 billion in the week ended on August 15.

According to the data released by Pakistan’s Central Bank, the foreign exchange reserves i.e. Forex Reserve has reached $ 19.571 billion. Commercial banks share it worth about $ 5.315 billion. According to Ketred Securities, Pakistan’s total foreign exchange reserves are $ 19.6 billion, which is sufficient to cover 2.32 months of imports.

What is foreign exchange reserves?

Significantly, the foreign exchange reserves of any country are that which is a collection of foreign currencies such as dollars, euros as well as gold or other assets kept by the Central Bank or Monetry Authority of one country. The main objective of the foreign exchange reserves is to keep the rupee -like currency stable or to protect it from falling as well as to pay in international trade and to complete the balance of payments with the economic crisis, to complete the balance deficit.

Also read: Strong activities of private sector, service sector growth reached all time high in August

India’s Forex Reserves: There has been a tremendous increase in the country’s currency reserves. During the week ended on 6 June 2025, the foreign currency reserves i.e. Forex Reserve have witnessed a tremendous jump of $ 5.17 billion and it has reached $ 696.65 billion. However, during the week ended on May 30, a week ago, the foreign exchange reserves saw a decrease of $ 1.24 billion and it had come down to $ 691.485. Foreign exchange reserves were at a record high with $ 704.885 billion during the week ended on 27 September 2024.

Increased gold reserve

According to RBI, during the week ended June 6, there has been a great increase of 1.583 billion in the gold reserve ie gold reserves. After this, the stock of gold was $ 85.888 billion. Whereas, during the week ended May 30, the Gold Reserve increased by $ 723 million.

According to the latest data released by the Central Reserve Bank, the Forex Asset has increased by $ 3.47 billion to $ 587.68 billion during the week ended June 6. These include non -American currencies like pounds, euros, yans.

Along with this, the foreign currency asset i.e. foreign exchange assets have increased by $ 3.47 billion in the last week ended June 6. After this increase, FCA has now increased to $ 587.68 billion. The highest part of FCA is in foreign exchange reserves.

Significantly, such an increase is a positive sign for any country. These reserves are also an important measure of measuring the economic strength of a country, which helps to keep foreign debt repayment, import expenses and currency stability.

Also read: Boeing and GE Aerospace’s confidence of investors, continuously selling shares of these two companies