New Delhi: India’s foreign exchange (forex) reserves fell sharply during the week ended June 26, 2026, according to the latest data released by the Reserve Bank of India (RBI).
The country’s total forex reserves declined by $5.654 billion to $666.933 billion. In the previous week, the reserves had increased by $963 million to $672.587 billion.
Foreign currency assets record a small drop
The RBI said that Foreign Currency Assets (FCA), which form the largest part of the country’s forex reserves, declined by $150 million to $541.067 billion.
The central bank noted that changes in the value of major global currencies such as the euro, pound sterling, and Japanese yen against the US dollar also affected the value of India’s foreign currency assets.
Gold reserves witness the biggest fall
The sharpest decline during the week was seen in India’s gold reserves.
According to the RBI, gold reserves dropped by $5.394 billion to $102.536 billion, making it the biggest contributor to the overall fall in forex reserves.
Meanwhile, the value of Special Drawing Rights (SDRs) declined by $89 million to $18.558 billion.
India’s reserve position with the International Monetary Fund (IMF) also fell by $21 million to $4.7772 billion.
Forex reserves remain below February record
India’s forex reserves had touched an all-time high of $728.494 billion during the week ended February 27, 2026.
However, reserves have declined in recent months as the RBI took several steps to support the rupee amid rising geopolitical tensions in West Asia. These measures included selling US dollars in the foreign exchange market to reduce pressure on the domestic currency.
Reason behind the fall in gold reserves
The decline in gold reserves also comes after the government introduced measures to reduce foreign exchange outflows.
On May 11, Prime Minister Narendra Modi urged citizens to reduce foreign travel, limit the use of petrol and diesel vehicles, and avoid buying gold to help lower import costs during a period of economic uncertainty.
The government also increased import duty on gold, which led to lower gold imports. This, along with changes in the valuation of gold holdings, contributed to the decline in India’s gold reserves during the latest reporting week.
