India’s Foreign Exchange Reserves Hit Record High of $709.41 Billion

India’s foreign exchange reserves climbed to a historic peak of $709.41 billion in the week ending January 23, 2026, surging by roughly $8 billion from the previous week’s level of $701.36 billion, the Reserve Bank of India announced on January 30.

The fresh record eclipses the earlier high of $704.89 billion set in September 2024 and underscores India’s strengthening external position despite persistent global volatility and recent pressure on the rupee.

According to the RBI’s weekly statistical supplement, the increase was propelled mainly by revaluation gains. Foreign currency assets, the dominant component of the reserves, rose by $2.37 billion to $562.885 billion, reflecting movements in non-USD currencies such as the euro and yen. Gold reserves recorded the largest single boost, jumping $5.64 billion to $123.088 billion as international gold prices remained elevated amid geopolitical uncertainties and sustained central bank buying. Special Drawing Rights edged up $33 million to $18.737 billion, while India’s reserve position in the International Monetary Fund increased $18 million to $4.703 billion.

Analysts point to a combination of higher gold valuations and a softer dollar index during the reporting period as primary factors behind the sharp weekly gain, even as the central bank continued selective interventions to stabilize the rupee, which has touched multi-month lows in recent trading sessions.

The bolstered reserves now cover more than 11 months of merchandise imports and represent approximately 94 percent of India’s total external debt on the latest available metrics, providing a formidable cushion against external shocks, import financing needs, and debt-servicing requirements heading into the 2026 fiscal year.

This marks the third straight week of accumulation following a $14.17 billion rise in the preceding period, signaling renewed momentum in external-sector confidence. Market participants view the milestone as a reassuring sign of macroeconomic stability amid ongoing challenges, including foreign portfolio outflows and shifting global interest-rate expectations.

The Reserve Bank of India reiterated its commitment to maintaining orderly conditions in the foreign exchange market while closely monitoring developments both domestically and internationally.