India’s foreign exchange reserves surged by $2.3 billion to reach $698.9 billion for the week ending June 13, 2025, according to the latest data released by the Reserve Bank of India (RBI). This marks the second consecutive weekly increase and brings the reserves within striking distance of the all-time high of $704.89 billion recorded in September 2024.
📊 Key Drivers Behind the Surge
- Foreign Currency Assets (FCAs): Rose by $1.74 billion, driven by favorable currency movements in the euro, pound, and yen
- Gold Reserves: Increased by $428 million, now totaling $86.32 billion
- Special Drawing Rights (SDRs): Up by $85 million to $18.76 billion
- IMF Reserve Position: Gained $43 million, reaching $4.45 billion
💹 Strong External Position
RBI Governor Sanjay Malhotra noted that the current forex reserves are sufficient to cover 11 months of imports and 96% of India’s external debt, reinforcing the country’s external financial stability.
💱 Rupee Strengthens
The Indian rupee also gained 18 paise, closing at ₹86.55 per US dollar on June 20, buoyed by strong capital inflows, easing crude oil prices, and a weakening dollar index.
📈 Outlook
With continued foreign investment, a stable macroeconomic environment, and strategic RBI interventions, India’s forex reserves are expected to breach the $700 billion mark soon, further strengthening the rupee and investor confidence.
Stay tuned for more updates on India’s economic indicators and financial markets.
