India’s foreign exchange (forex) reserves declined by USD 1.87 billion in the week that ended 28 November 2025 to USD 686.227 billion, as per the latest weekly statistics shared by the Reserve Bank of India (RBI).
The data showed that India’s foreign currency assets (FCA), the biggest contributor to the forex reserves, slipped USD 3.569 billion to USD 557.031 billion. On the other hand, gold reserves rose by USD 1.613 billion to USD 105.795 billion during the current reporting week.
The special drawing rights (SDRs) increased by USD 63 million to USD 18.628 billion, as per the data. The country’s reserve position with the International Monetary Fund (IMF) rose by USD 16 million to USD 4.772 billion. The central bank often intervenes by managing liquidity, including selling dollars, to prevent a steep depreciation of the rupee.
Chief Economic Adviser V Anantha Nageswaran stated on 3 December that the government is unconcerned about the Indian rupee’s recent decline against the US dollar, expressing confidence that its value will improve next year. Speaking at an event in New Delhi, Nageswaran also projected that India’s gross foreign direct investment (FDI) could surpass USD 100 billion in the current financial year.
Recently, the rupee breached the 90-per-dollar level for the first time, settling at a historic low of 90.21 (provisional). The depreciation, amounting to approximately five per cent in 2025, has been attributed by forex traders to sustained foreign fund outflows, elevated crude oil prices, and uncertainty surrounding a potential India-US trade deal. A weaker currency typically makes exports more competitive but increases the cost of imports, potentially stoking inflation in import-reliant sectors like petroleum, gems and jewellery, and electronics. |
