India's Forex Kitty Crosses $707 Bn, Adds $14 Bn In A Week

India's foreign exchange reserves climbed sharply in the week ended August 7, gaining $14.136 billion to reach $707.002 billion, the Reserve Bank of India (RBI) said in data released on Friday. In rupee terms, the reserves grew by ₹1,19,945 crore to touch ₹67.32 lakh crore.

This marks the second straight week of strong growth. In the previous week, ending July 31, the reserves had already added $10.512 billion to stand at $692.866 billion, according to agency inputs.

Even with this two-week rally, the kitty is still short of the record $728.494 billion it touched in the week ended February 27 this year. That peak was followed by a prolonged slide, triggered by the West Asia conflict, which weakened the rupee and pushed the RBI to sell dollars in the market to defend the currency.

What Pushed The Numbers Up

Much of this week's gain came from foreign currency assets, which make up the bulk of the reserves. This segment added $9.946 billion to reach $574.625 billion. Gold holdings also contributed meaningfully, rising by $3.995 billion to $108.738 billion, while the country's special drawing rights (SDRs) with the IMF edged up by $79 million to $18.745 billion, agency reports showed.

Since foreign currency assets are calculated in dollar terms, their value also moves with fluctuations in other major currencies, such as the euro, pound and yen, that form part of the reserves.

Separately, India's reserve tranche position with the International Monetary Fund grew by $116 million to $4.894 billion.

To boost forex inflows, the RBI and the central government had introduced several measures in July, including the FCNR(B) deposit scheme. The country has attracted $40 billion through these initiatives so far, the reports noted.

Compared to end-March 2026, the reserves have grown by $15.894 billion, and they are up $13.384 billion on a year-on-year basis.

Notably, the rupee gained 3 paise on Friday to settle at 95.42 (provisional) against the US dollar. News agency PTI quoted forex traders as saying the currency continued to face pressure from foreign fund outflows and firming crude oil prices, against a backdrop of geopolitical tensions.

During the day's trade, the rupee opened at 95.39 and swung between 95.38 and 95.44, before closing 3 paise higher than its previous session.