India's forex reserves jump $7.26 billion to $674.19 billion as foreign currency assets, gold rebound

India's foreign exchange reserves rose sharply by $ 7.26 billion to $ 674.19 billion in the week ended July 3, driven by a strong increase in foreign currency assets (FCA) and gold reserves, according to data released by the Reserve Bank of India (RBI) on Friday.

The rise marks one of the strongest weekly gains in recent months, with all major components of the country's forex reserves registering an increase during the reporting week.

Foreign currency assets—the largest component of India's forex reserves—climbed $ 4.51 billion to $ 545.58 billion, reflecting gains in the country's overseas currency holdings.

Gold reserves also posted a robust increase, rising $ 2.67 billion to $105.21 billion, providing additional support to the overall reserve position.

Meanwhile, Special Drawing Rights (SDRs) increased by 65 million to 18.62 billion, while India's reserve position with the International Monetary Fund (IMF) edged up $ 15 million to $ 4.79 billion.

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Despite the latest weekly surge, India's foreign exchange reserves remain below earlier levels. Compared with the end of March 2026, total reserves are lower by $16.92 billion, primarily due to declines in foreign currency assets and gold holdings.

On a year-on-year basis, reserves are down 25.54 billion. However, gold holdings have risen significantly by 20.36 billion over the past year, highlighting the RBI's continued focus on strengthening its gold portfolio amid global economic uncertainty.

India's forex reserves serve as a crucial buffer against external shocks, help stabilise the rupee during periods of market volatility, and provide confidence in the country's ability to meet its external payment obligations.