India's Forex Reserves Near $700 Billion Mark Again! RBI Reports Fresh Surge Amid Global Volatility

India's foreign exchange reserves are back on the rise—and they're inching closer to the $700 billion milestone once again. According to data released by the Reserve Bank of India (RBI) on Friday (June 20), forex reserves jumped by $2.294 billion to reach $698.95 billion for the week ended June 13.

This follows a strong $5.17 billion increase in the previous week ended June 6, taking the reserves up from $691.48 billion to $696.65 billion. India's reserves are now just $6 billion shy of their all-time high of $704.885 billion, recorded at the end of September 2024.

The rally in reserves is led primarily by a rise in foreign currency assets (FCAs)—the largest component of the forex kitty—which surged by $1.739 billion to $589.426 billion. FCAs reflect the impact of the dollar’s movement against major global currencies like the euro, pound, and yen. Gold reserves also glittered brighter, increasing by $428 million to $86.316 billion, as per the RBI data.

Meanwhile, Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by $85 million to $18.756 billion, and India’s reserve position with the IMF also edged up by $43 million to $4.452 billion. The steady climb in reserves is seen as a positive buffer amid global uncertainties, especially with geopolitical tensions brewing in the Middle East and crude oil prices inching higher.

With the rupee holding relatively stable and capital inflows remaining robust, analysts say the rising forex reserves give the RBI greater firepower to manage volatility and defend the currency when needed.

India now stands as one of the top forex reserve holders globally, reinforcing its macroeconomic stability as it eyes continued growth momentum in FY26.

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