India's Forex Reserves Drop $8.09 B to $688.9 B Amid Dollar Strength

India's foreign exchange reserves fell sharply by $8.09 billion in the week ending 15 May 2026, shrinking to $688.89 billion from $696.98 billion a week earlier. The biggest decline came in foreign currency assets, which dropped $6.48 billion to $545.90 billion, while gold holdings fell $1.54 billion to $119.32 billion. Special Drawing Rights fell $49 million to $18.82 billion and the reserve position with the IMF slipped $25 million to $4.85 billion.

The Reserve Bank of India has been selling dollars to limit rupee depreciation, and Prime Minister Narendra Modi has urged citizens to curb foreign travel, fuel consumption and gold purchases to conserve reserves. Finance Commission Chairman Arvind Panagariya warned against excessive RBI intervention, warning that defending the rupee could further bleed the reserves.

The decline follows heightened volatility in global markets linked to the US‑Iran conflict and a stronger US dollar, which have pressured the rupee and the country's external buffers.