India’s foreign exchange reserves recorded a sharp weekly jump, climbing by more than $14 billion to cross the $707-billion mark, according to the latest data released by the Reserve Bank of India (RBI). The increase provides a stronger cushion for the Indian economy at a time when global markets remain sensitive to crude oil movements, capital flows and geopolitical developments.
For the week ended August 7, the country’s total foreign exchange reserves rose by $14.136 billion to $707.002 billion. In rupee terms, the increase stood at Rs 1,19,945 crore, taking the overall reserves to Rs 67.32 lakh crore.
Foreign currency assets (FCAs), which account for the largest share of India’s forex reserves, were the biggest contributor to the weekly rise. FCAs increased by $9.946 billion to reach $574.625 billion during the week.
Gold holdings also recorded a significant increase. The value of India’s gold reserves climbed by $3.995 billion to $108.738 billion. Meanwhile, special drawing rights (SDRs) with the International Monetary Fund rose by $79 million to $18.745 billion.
India’s reserve position with the IMF also strengthened during the period. It increased by $116 million to $4.894 billion.
Reserves Up Sharply Since March
The latest increase has pushed India’s foreign exchange stock substantially higher compared with levels seen at the end of the previous financial year. The country’s reserves have expanded by $15.894 billion since the end of March 2026.
On a year-on-year basis, the increase stands at $13.384 billion, highlighting the resilience of India’s external position despite volatility in global financial markets.
A higher reserve pile gives the country greater room to manage external shocks, particularly during periods of currency volatility or sudden changes in global capital flows.
Rupee Gains 3 Paise Against US Dollar
The Indian rupee also ended Friday’s trading session marginally stronger against the US dollar. The domestic currency appreciated by 3 paise to close at 95.42.
However, the rupee continued to face pressure during the session. According to forex traders cited by PTI, foreign fund outflows and elevated crude oil prices weighed on the currency, while continuing geopolitical uncertainties added to the cautious sentiment.
At the interbank foreign exchange market, the rupee began the day at 95.39 against the US dollar. It moved between 95.38 and 95.44 during the session before settling at 95.42, compared with its previous close.
Crude Prices, Capital Flows Remain In Focus
The movement in the rupee comes as investors continue to track global developments that can influence India’s external accounts. Higher crude oil prices can put pressure on the country’s import bill and, in turn, affect demand for foreign currency.
At the same time, foreign fund movements remain an important factor for the rupee and domestic financial markets. While India’s forex reserves have strengthened considerably, currency traders remain alert to geopolitical developments and shifts in global investor sentiment.
