Forex reserves mark new all-time high above $709 billion, led by gold and FCAs

India’s foreign exchange reserves rose by a sharp $8.053 billion to touch a new all-time high of $709.413 billion in the week ended January 23, extending the recent rebound after months of pressure from rupee volatility, according to data released by the Reserve Bank of India.

The latest rise follows a jump of $14.167 billion in the previous reporting week, when reserves had climbed to $701.36 billion, PTI reported. India’s forex stockpile had earlier peaked at $704.89 billion in September 2024 but came under strain subsequently as the central bank deployed reserves to curb excessive depreciation in the rupee.

Foreign currency assets (FCAs), the largest component of the reserves, increased by $2.367 billion to $562.885 billion during the week. FCAs reflect movements in non-US currencies such as the euro, pound and yen held in the reserves, adjusted for their appreciation or depreciation against the dollar.

Gold reserves recorded a sharper rise, jumping $5.635 billion to $123.088 billion in the reporting week, the RBI data showed.

Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) increased by $33 million to $18.737 billion, while India’s reserve position with the IMF rose by $18 million to $4.703 billion.