India's Forex Reserves Decline to $719.75 Billion amid Drop in Gold Holdings

India's foreign exchange reserves declined by $1.27 billion to settle at $719.75 billion for the week ended October 23, 2026, according to data released by the Reserve Bank of India (RBI). This reduction follows a larger drop of $5.01 billion in the preceding week, continuing a downward trajectory since reserves reached a record high of $785.71 billion in early September. Financial experts attribute this steady decrease primarily to the deployment of Foreign Currency Non-Resident (Bank) resources and active dollar sales by the central bank to defend the rupee.

The weekly contraction was driven mainly by a $2.65 billion drop in the value of gold holdings, bringing total gold reserves down to $103.15 billion. The decrease in gold value surpassed the gains seen in foreign currency assets, which rose by $1.36 billion to reach $593.21 billion. Meanwhile, Special Drawing Rights (SDRs) increased slightly by $27 million to $18.61 billion, while India's reserve position with the International Monetary Fund experienced a minor dip of $4 million, ending at $4.79 billion.