New Delhi, August 7: According to data released by the Reserve Bank of India (RBI) on Friday, India’s foreign exchange reserves increased by $10.512 billion to reach $692.866 billion for the week ending July 31. This marks the largest weekly increase since the end of January and brings the reserves close to the record level of $728.5 billion set in February 2026.
This latest surge follows a foreign exchange gain of $6.118 billion for the week ending July 24.
The RBI reported that during the week ending July 31, the value of gold reserves rose by $1.685 billion, reaching $104.743 billion. Additionally, a key component of the reserves, foreign currency assets, increased by $8.750 billion, totaling $564.680 billion.
Foreign currency assets, expressed in terms of the dollar, include the impact of changes in the value of non-U.S. currencies, such as the euro, pound, and yen, held within the foreign exchange reserves.
The central bank also noted an increase of $48 million in Special Drawing Rights (SDR), bringing the total to $18.666 billion for the reported week.
The RBI’s weekly statistics supplement indicates that after a decline observed earlier this year amid global uncertainties, the country’s foreign exchange reserves continue to strengthen.
During the week ending February 27, India’s foreign exchange reserves had reached an all-time high of $728.494 billion.
For the past five weeks, there has been a consistent increase in foreign exchange reserves, primarily due to a surge in foreign currency inflows since early June. During this period, approximately $40.8 billion in additional investments have flowed into India through Non-Resident Indian deposit schemes and foreign borrowings, bolstering the country’s external financial position.
The increase in foreign exchange reserves is also positively impacting the Indian currency, the rupee. Since reaching a record low in May 2026, the rupee has strengthened by approximately 1.8 percent. The growth in reserves provides the RBI with greater financial strength to intervene in the currency market and support the rupee when necessary.
A robust foreign exchange reserve not only protects the economy from external shocks but also boosts investor confidence. It supports import payments, exchange rate stability, and the overall strength of the financial system.
Market experts believe that the trend of increasing foreign exchange reserves may continue. They suggest that if global conditions remain favorable and foreign investment flows persist, India could soon set a new historical record for its foreign exchange reserves. This would further strengthen India’s financial standing among the world’s major economies.
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