India’s forex reserves fall to an over one-year low as central bank mounts rupee defence
Wire desk byline Sourced from Xinhua, Dawn, Arab News, Anadolu and Minute Mirror. Translated and abridged by the GSRRA Desk.
MUMBAI, May 29 (Reuters) – India’s foreign exchange reserves (INFXR=ECI), opens new tab fell to a more than one-year low of $681.4 billion in the week ended May 22, from $688.89 billion a week earlier, the Reserve Bank of India (RBI) data showed on Friday.
The $7.5 billion decline was largely due to a $4.5 billion fall in the value of the central bank’s gold holdings, week-on-week.
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The value of the RBI’s foreign currency assets also shrunk by nearly $3 billion to $543 billion.
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Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies in the reserves.
The RBI has been selling dollars to defend the beleaguered rupee, which has declined 4% since the U.S.-Iran war began, as surging energy prices sparked capital outflows and clouded India’s macroeconomic outlook.
In the week to which the data pertains, the rupee <INR=IN> slid to a record low of 96.96 per dollar before being shored up by firm RBI intervention over multiple trading sessions, including likely on Friday.
It ended the session at 95 per dollar, up 0.7% week-on-week. Foreign exchange reserves include India’s Reserve Tranche position in the International Monetary Fund.
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FOREIGN EXCHANGE RESERVES (in million U.S. dollars)
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May 22 May 15
2026 2026
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Foreign currency assets 543,032 545,904
Gold 114,786 119,317
SDRs 18,748 18,824
Reserve Tranche Position 4,818 4,850
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Total 681,384 688,894
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Reference Link:- https://www.reuters.com/world/india/indias-forex-reserves-fall-over-one-year-low-central-bank-mounts-rupee-defence-2026-05-29/
Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…
