India forex reserves fall $2.69 billion to $717 billion, second weekly drop

India's foreign exchange reserves fell by $2.691 billion to $717.056 billion in the week ended Friday, 30 October 2026, according to Reserve Bank of India (RBI) data released on Friday, 6 November 2026. It was the second weekly fall in a row: in the previous week the reserves had dropped by $1.269 billion to $719.748 billion. Foreign currency assets, the largest part of the reserves, fell by $2.088 billion to $591.118 billion. Reserves are now well below their record high of $785.706 billion, reached in the week ended 4 September, which had been lifted by a diaspora deposit scheme.

Foreign exchange reserves are the dollars, euros, gold and other assets the RBI holds to pay for imports, service foreign debt and steady the rupee. When the rupee comes under pressure, the RBI can sell dollars from these reserves to slow its fall. Weekly changes therefore show how actively the central bank is defending the currency.

The latest fall comes as the rupee is weak against the US dollar. The RBI has said it does not target any particular exchange rate but will act against sharp swings and speculation. A drop of this size in a week suggests the RBI has been selling dollars, alongside the planned use of money raised from the diaspora deposit scheme earlier in the year.

For businesses and households, the level of reserves still offers a large cushion. At over $717 billion, they remain above the end-March 2026 level. Importers, students paying foreign fees and families sending money abroad are affected mainly through the exchange rate: the more the RBI spends to steady the rupee, the smaller the swings they face, but reserves cannot be used without limit.

The data also show how much of the September peak came from a one-time inflow. The diaspora deposit swap brought in money that is linked to deposits held by non-resident Indians, and part of it is now being deployed, which naturally lowers the headline figure.

Peepals calculation: The RBI release gives four parts of the reserves. Subtracting foreign currency assets, SDRs and the IMF position from the total leaves about $102.59 billion for gold (717.056 − 591.118 − 18.558 − 4.790 = 102.590). Since the other three parts fell by a combined $2.132 billion (2.088 + 0.047 − 0.003), gold holdings by value fell by about $0.559 billion in the week. Over two weeks, reserves dropped $3.96 billion (2.691 + 1.269), and they are now $68.65 billion, or about 8.7%, below the September record (785.706 − 717.056 = 68.65; 68.65 / 785.706 ≈ 0.087). Our calculation from the reported figures.

Short-term: Markets will read further weekly falls as a sign of continued RBI support for the rupee.

Long-term: The reserves remain large enough to cushion shocks, but repeated use reduces the buffer built up during the diaspora deposit inflow.

Who is affected: importers and exporters, students and travellers paying in foreign currency, non-resident Indians holding FCNR deposits, and investors tracking the rupee.

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