Key points on india forex reserves oct overview
- India’s forex reserves fell by $1.269 billion to $719.748 billion in the week ended 23 October, the seventh straight weekly decline.
- The fall came from gold, which dropped $2.65 billion. Foreign currency assets rose $1.36 billion.
- Reports say the decline was largely driven by valuation changes rather than RBI dollar sales.
- Reserves remain $28.6 billion above end-March and $24.4 billion higher than a year earlier.
What happened
| Component | Week ended 23 Oct | Weekly change | Week ended 16 Oct |
|---|---|---|---|
| Total reserves | $719.748 bn | −$1.269 bn | $721.016 bn |
| Foreign currency assets (FCA) | $593.205 bn | +$1.358 bn | $591.847 bn |
| Gold | $103.150 bn | −$2.650 bn | $105.80 bn |
| Special Drawing Rights (SDRs) | $18.605 bn | +$0.027 bn | $18.578 bn |
| Reserve position with the IMF | $4.787 bn | −$0.004 bn | $4.791 bn |
Why it matters
A smaller, valuation-driven drop. This week’s fall was much smaller than the previous two, which saw drops of $5.0 billion and $8.6 billion. It also came from a different source. Gold holdings fell in value as global gold prices declined, while foreign currency assets, the part most affected by RBI dollar sales, actually rose. Moneycontrol reported that the decline was largely driven by valuation changes rather than dollar sales by the central bank.
Why foreign currency assets rose: The week included the Jio Platforms IPO, which brought foreign dollar inflows, and the rupee strengthened to its best level since early September on 21 October. A firmer rupee and dollar inflows reduce the need for RBI dollar sales, and may have allowed the RBI to add dollars.
The RBI’s October measures are in place. Earlier in the month, the RBI set up a special dollar-selling window for three state-run oil companies. It also capped banks’ net open positions in the rupee at $100 million and tightened rules on banks’ currency derivative positions. These steps move some dollar demand away from the spot market, which can reduce the need for direct intervention.
Still well below the peak. Reserves hit a record $785.706 billion in the week of 4 September, boosted by a special concessional swap scheme for NRI deposits. They are now about $66 billion below that peak, after seven weeks of declines.
Market reaction
- Rupee during the reporting week (19–23 October): The rupee strengthened to around 94.4–94.5 on 21 October, its best close since early September, then slipped to 94.82 on 22 October as crude rose.
- Rupee since then: It touched a two-week low of 95.38 on 29 October after the Fed, then gained 33 paise to close at about 94.93 on Friday, 30 October, as the dollar weakened.
- Market impact of the data: The release came on Friday evening, after Indian currency markets had closed, so any reaction shows on Monday, 2 November. With the fall driven by gold valuation, the impact is likely to be limited.
Impact on Indian traders
USD/INR: A stable foreign currency assets figure suggests the RBI did not need heavy dollar sales during a week of IPO inflows and a firmer rupee. That points to a calmer rupee. The RBI’s large reserves still give it room to smooth sharp moves, which tends to limit extreme spikes in USD/INR.
Next week’s figure may fall again: Gold fell sharply in the following week, including a 3.6% drop on Friday, 30 October, to a 2026 low near $3,885. That is likely to cut the value of the RBI’s gold holdings again in the 6 November release, even if foreign currency assets hold steady.
Currency pairs on NSE: NSE lists USD/INR, EUR/INR, GBP/INR and JPY/INR, plus EUR/USD, GBP/USD and USD/JPY. Trading forex with unauthorised offshore platforms is not permitted under FEMA.
Reserve swings often track global risk appetite. Our Risk-On / Risk-Off Meter can help you follow the mood that drives rupee pressure.
What to watch next
| Date (IST) | Event | Why it matters |
|---|---|---|
| Mon, 2 Nov, 09:00 | Rupee open | First trading after the data and the late-week AI sell-off |
| Wed, 4 Nov | US midterm results during Indian hours | Possible USD/INR volatility and RBI action |
| Fri, 6 Nov, 19:00 | US October jobs report | Dollar direction |
| Fri, 6 Nov (evening) | RBI forex reserves, week ended 30 October | Covers Fed week and gold’s fall |
| – | RBI monthly bulletin with intervention data | Confirms actual RBI dollar sales or purchases |
| Fri, 4 Dec, 10:00 | RBI MPC decision | Rates and rupee policy |
Possible scenarios:
- If gold keeps falling, reserves may decline again on valuation, even without RBI dollar sales.
- If FPI outflows and high crude pressure the rupee around the US midterms, the RBI may step up dollar sales, which would show as a drop in foreign currency assets.
- If the dollar stays weak and inflows continue, foreign currency assets could keep rising and reserves may stabilise.
Track all release times on our Economic Calendar, and find more coverage in Market Analysis & News. Related: India forex reserves – week ending 16 October, USD/INR November outlook
FAQs
What are India’s forex reserves as of 23 October 2026?
$719.748 billion, down $1.269 billion from the previous week, according to RBI data released on 30 October.
Why did India’s forex reserves fall this week?
Mainly because the value of gold holdings fell by $2.65 billion. Foreign currency assets rose by $1.36 billion, and reports said the decline was driven by valuation changes rather than RBI dollar sales.
How many weeks have India’s forex reserves fallen?
Seven straight weeks, from a record $785.7 billion in the week of 4 September.