India’s Forex Reserves Dip $5.6 Billion to $689.73 Billion Amid Market Volatility

India’s foreign exchange reserves stood at $689.73 billion on October 31, 2025, marking a notable decrease of $5.62 billion from $695.36 billion recorded the previous week, according to data released by the Reserve Bank of India (RBI). This decline indicates the central bank’s ongoing efforts to manage currency volatility amid global uncertainties.

The drop in reserves primarily stems from the RBI’s interventions in the forex market aimed at stabilizing the Indian rupee against a backdrop of a weakening currency and rising global interest rates. The central bank has been actively moderating undue fluctuations by deploying reserves strategically rather than targeting a fixed exchange rate.

Components of the forex reserves include foreign currency assets, gold reserves, Special Drawing Rights (SDRs), and the reserve position with the International Monetary Fund (IMF). Each segment saw varying declines, with foreign currency assets and gold reserves contributing significantly to the overall downswing.

Despite this dip, India’s forex reserves remain among the largest globally, supporting external sector stability and providing a buffer against external shocks.

Key Highlights:

Forex reserves dropped by $5.623 billion to $689.73 billion as of October 31, 2025​

Previous week’s reserves were $695.36 billion

Decline primarily due to RBI’s forex market interventions to stabilize the rupee

Foreign currency assets and gold reserves were major contributors to the decline

Reserves continue to provide a strong buffer for India’s external sector stability

RBI monitors market conditions closely, adjusting reserves to moderate volatility

Sources: Reserve Bank of India, The Economic Times, Xinhua News Agency