India's Forex Reserves Fall $18.34 Billion

India's foreign exchange reserves fell by $18.343 billion to $747.557 billion in the week ended September 25, 2026, according to data released by the Reserve Bank of India. This was the third consecutive weekly decline after reserves reached a record $785.706 billion on September 4.

The latest decline brings the cumulative fall over three weeks to approximately $38.15 billion. Market participants attributed the reduction partly to the RBI's foreign-exchange market intervention to limit the rupee's depreciation. Changes in the dollar value of assets held in currencies such as the euro and yen may also have contributed. The RBI does not specify the reasons behind weekly changes in reserves.

Foreign currency assets, the largest component of India's reserves, declined by $15.57 billion to $615.411 billion during the reporting week. These assets are reported in US-dollar terms, so exchange-rate movements in the currencies they contain can affect their recorded value.

The value of India's gold reserves fell by $2.591 billion to $108.701 billion. Special Drawing Rights held with the International Monetary Fund declined by around $97 million to $18.64 billion, while India's reserve position with the IMF decreased by approximately $86 million to $4.8 billion.

The reserve decline comes as the rupee faces pressure from global financial conditions and rising oil prices. Reuters reported that the rupee weakened to 96.3150 against the US dollar on October 1, amid higher global bond yields, elevated crude prices and foreign portfolio outflows.

Foreign exchange reserves provide a buffer against external financial shocks and help authorities manage volatility in currency markets. The latest figures reflect a reduction from the September record, although the weekly movement alone does not establish how much was caused by intervention, valuation changes or other factors.