India’s foreign exchange reserves rose by $4.8 billion to reach $702.78 billion for the week ending June 27, according to data released by the Reserve Bank of India (RBI) on Friday.

This marks a recovery from the previous week, when reserves had fallen by $1.02 billion to $697.93 billion. The latest figure is just below the all-time high of $704.89 billion recorded in late September 2024.

During the week, foreign currency assets — the largest component of reserves — rose by $5.75 billion to $594.82 billion. These assets reflect the value of holdings in non-US currencies such as the euro, pound, and yen, expressed in dollar terms.

However, gold reserves declined by $1.23 billion to $84.5 billion. Special Drawing Rights (SDRs), the international reserve asset created by the IMF, rose slightly by $158 million to $18.83 billion.

The RBI actively manages the reserves to maintain stability in the rupee and ensure orderly functioning of the currency market. It intervenes — usually by selling or buying dollars — to curb excessive volatility, without targeting any specific exchange rate level.

India’s robust forex reserves provide a strong buffer against external shocks, supporting the rupee and ensuring confidence in the country’s ability to meet its external obligations.

With the current level near record highs, India remains among the top holders of foreign exchange reserves globally, underlining its resilience amid global economic uncertainties.