Gold pulls forex reserves down for seventh straight week to $719.8 billion

India’s foreign exchange reserves fell for the seventh straight week to $719.8 billion in the week ended October 23, 2026, due to a fall in gold reserves.

While total reserves fell $1.3 billion, foreign currency assets increased $1.4 billion. Gold reserves fell by $2.7 billion, mainly due to valuation losses.

Gold prices fell 4 per cent to $4,165.58 per ounce during the reporting week. 

After hitting an all-time high of $785.7 billion in the week ended September 4, 2026, total foreign exchange reserves fell $66 billion over the next seven weeks as the central bank sold dollars in the foreign exchange market to curb volatility.

The rupee, which closed 0.3 per cent higher at 94.96 against the dollar on Friday, fell 0.9 per cent against the dollar in October.

“The Indian rupee strengthened in tandem with broader Asian peers, taking cues from a softer dollar index following the latest economic data. Domestic equities continued their upward trajectory as foreign institutional selling eased, helping the rupee lead regional gains,” said Dilip Parmar, senior research analyst, HDFC Securities.

The Indian unit depreciated 0.15 per cent in the first seven months of the financial year. In 2026, the rupee has depreciated 5.35 per cent against the dollar.