India's Forex Reserves Take a Hit: What You Need to Know

India's foreign exchange reserves have experienced a notable decline, dropping by USD 5.654 billion to USD 666.933 billion as of June 26. This follows a previous increase and comes after the reserves reached a record high earlier this year. Prime Minister Modi has urged citizens to conserve forex through various measures. The decrease in reserves is attributed to market pressures and the RBI's interventions. This article delves into the details of the decline, including changes in foreign currency assets and gold reserves, and what it means for India's economy.

By Narendra Chaudhary Jul 3, 2026, 17:53 IST

Significant Decline in Forex Reserves

Mumbai: The Reserve Bank of India (RBI) reported a decrease of USD 5.654 billion in India's foreign exchange reserves, bringing the total to USD 666.933 billion for the week ending June 26.

In the preceding week, reserves had actually increased by USD 963 million, reaching USD 672.587 billion.

Earlier this year, reserves peaked at an impressive USD 728.494 billion during the week ending February 27, prior to the escalation of conflict in West Asia, which triggered a series of declines as the rupee faced pressure and the RBI intervened in the forex market by selling dollars.

Since May 11, Prime Minister Narendra Modi has urged citizens to conserve foreign exchange by reducing foreign travel, limiting fuel consumption, and postponing gold purchases for a year.

For the week ending June 26, foreign currency assets, a key part of the reserves, fell by USD 150 million to USD 541.067 billion, according to the central bank's data.

These foreign currency assets reflect the fluctuations in value of non-US currencies like the euro, pound, and yen held in reserves.

Additionally, the value of gold reserves dropped by USD 5.394 billion, totaling USD 102.536 billion for the week.

The special drawing rights (SDRs) also saw a decline of USD 89 million, now standing at USD 18.558 billion, as reported by the apex bank.

Moreover, India's reserve position with the International Monetary Fund (IMF) decreased by USD 21 million, reaching USD 4.772 billion at the end of the reporting week.