India's Foreign Exchange Reserves Rise to $682 Billion

India's Forex Reserve Jumps to $682.321 Billion

India's foreign exchange reserve has increased by $938 million to $682.321 billion as of the week ended May 28, according to the Reserve Bank of India (RBI).

This marks a significant recovery from the previous reporting week, when the reserve dropped by $7.511 billion to $681.384 billion. The RBI's data highlights a notable fluctuation in the country's foreign exchange reserve in recent months. The reserve had reached an all-time high of $728.494 billion during the week ended February 27, before the onset of the Middle East conflict led to a series of weeks where the rupee came under pressure and the RBI intervened in the foreign exchange market through dollar sales.

Prime Minister Narendra Modi's Appeal for Forex Conservation

Read also: Net Exports Contribute 0.3 Percentage Points to FY26 GDP Growth, Turn Positive in Q4 Amid Trade Disruptions

Prime Minister Narendra Modi has made multiple public appeals since May 11, urging countrymen to conserve forex by reducing foreign travel, limiting fuel use, and refraining from gold purchases for a year. This campaign appears to have had a positive impact on the country's foreign exchange reserve.

Breakdown of Foreign Currency Assets

For the week ended May 29, foreign currency assets, a major component of the reserves, increased by $3.116 billion to $546.148 billion, according to the RBI's data. This increase includes the effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves.

Read also: GDP Growth Surpasses Expectations in First Quarter

The value of gold reserves declined by $2.186 billion to $112.6 billion during the week, the RBI said. The special drawing rights (SDRs) remained unchanged at $18.747 billion, while India's reserve position with the IMF increased by $8 million to $4.826 billion at the end of the reporting week.