India's forex reserves fall $2.69 billion to $717 billion in eighth consecutive weekly decline

India's foreign exchange reserves declined by $2.691 billion to $717.056 billion during the week ending October 30, according to the Reserve Bank of India's weekly bulletin released on Friday. This marks the eighth consecutive week of decline, extending a downward trend that began after the reserves reached an all-time high of $785.706 billion in the week ended September 4, 2026.

The drawdown reflects two primary drivers: the Reserve Bank of India's dollar sales to defend the rupee against depreciation pressure, and the deployment of funds mobilized through the special foreign currency non-resident (FCNR-B) deposit facility. The rupee has faced pressure from foreign investor outflows, elevated crude oil prices, and persistent dollar demand. Foreign currency assets, the largest component of reserves, fell by $2.088 billion to $591.118 billion, while gold reserves decreased by $559 million to $102.591 billion. Special Drawing Rights declined by $47 million to $18.558 billion, though the IMF reserve position increased marginally by $3 million to $4.79 billion.

Despite the weekly decline, India's reserves remain above their March 2026 level, having increased by $25.949 billion since the fiscal year end. Year-on-year, reserves have grown by $27.324 billion. The decline from the September peak reflects the combined effect of RBI currency defense operations and the deployment of funds from the diaspora deposit scheme, which had mobilized a record $133 billion in the weeks prior. On November 6, the rupee rebounded to Rs 93.905 per dollar, its strongest level since April 22, supported by falling crude oil prices and renewed foreign portfolio investment flows.