MPC Forex Level: India forex reserves rebound to $697.1 bn as RBI flags volatility management

India’s foreign exchange reserves rose to $697.1 billion as of April 3, RBI Governor Sanjay Malhotra said during the Monetary Policy Meeting on Wednesday, indicating a recovery after recent sharp declines driven by currency market interventions.

The uptick follows two consecutive weeks of depletion, during which the reserves had dropped to $688.058 billion as of March 27, according to Reserve Bank of India data. The stockpile had fallen by $10.288 billion in that week alone, after a steeper $11.413 billion decline in the preceding period.

Also Read: RBI GDP outlook FY26: India retains FY26 GDP at 7.6%, sets FY27 growth at 6.9% as Iran war, oil risks mount


The drawdown comes amid sustained pressure on the rupee, with the RBI widely seen as deploying its dollar reserves to curb volatility. The Indian currency has been among the worst-performing in Asia this year, weighed down by rising crude oil prices and heightened geopolitical tensions linked to the West Asia conflict.

Reserves have been on a declining trajectory since the outbreak of the conflict, after touching an all-time high of $728.49 billion on February 27.

The fall in the latest reported week was led by a drop in foreign currency assets — the largest component of reserves — which declined by $6.622 billion to $551.072 billion. Gold reserves also fell by $3.666 billion to $113.521 billion.

Also Read: RBI Inflation 2026–27: Sanjay Malhotra & Co peg FY26 inflation projection at 4.6% as war risks cloud outlook

The overall reserves include $18.649 billion in special drawing rights and $4.816 billion in India’s reserve position with the International Monetary Fund.

"Rising global uncertainties and elevated prices of key energy commodities pose some upside risks to India's current account deficit this year," RBI's Sanjay Malhotra said.