India’s Forex Reserves Fall $1.8 Billion as FCA Drops, Gold Rises: RBI Data Breakdown

India’s reserve position weakened last week after a sharp fall in foreign currency holdings, even as gold gained value. The change reflects global market pressures.

India forex reserves fell by USD 1.877 billion in the week ending 28 November 2025, RBI forex data showed, signalling valuation stress and renewed intervention to stabilise the rupee.

India forex reserves serve as India’s primary buffer against currency volatility, external debt obligations and global financial shocks. In the latest release of RBI forex data published in the Weekly Statistical Supplement on 5 December 2025, the central bank confirmed that most of the decline came from foreign currency assets (FCA), while gold reserves rose. 

This mixed movement reflects shifting global currency valuations and potential policy action by the RBI.

Inside RBI’s Latest Reserve Update: What Changed?

The RBI publishes weekly reserve numbers through the Weekly Statistical Supplement (WSS) — Report Serial WSS/2025/48, under RBI.org.in → Publications → Weekly Statistical Supplement.

Read More – Rupee Slips to Two-Week Low. What’s Causing the Sudden Drop?

For the week ended 28 November 2025, the RBI forex data shows:

• Total India forex reserves: USD 686.227 billion
• Weekly fall: USD 1.877 billion
• FCA: USD 557.031 billion, down USD 3.569 billion
• Gold reserves: USD 105.795 billion, up USD 1.613 billion
• SDR + IMF position: USD 23.400 billion, up USD 79 million
   

The decline in FCA indicates valuation losses likely caused by US dollar strengths against major currencies. The rise in gold suggests diversification benefits amid global uncertainty.

What Earlier Weeks Tell Us About the Trend?

India forex reserves have seen sharp swings over November, proving how vulnerable the external sector is to currency moves, capital flows and commodity markets.
 

What the trend shows:

• Early November: A fall of USD 2.7 billion driven by FCA and gold valuation changes.
• Mid-November: A strong rebound due to favourable gold and SDR pricing.
• Late November: Back-to-back declines as FCA dipped again and the rupee faced pressure.

This pattern indicates that India forex reserves remain resilient but fluid, adjusting week-to-week with global currency and commodity movements.

What Experts and Analysts Are Saying?

Economists told LiveMint that the fall in FCA reflects both valuation effects and potential RBI activity in the currency market to stabilise the rupee against global volatility. Analysts also said that rising gold reserves strengthen India’s diversification strategy.

Also Read – Why the Rupee Is Falling Again and How RBI Is Trying to Hold It

A LoansJagat explainer published in 2025 noted that RBI’s reserve management has increasingly focused on balancing FCA with gold and SDR to reduce exposure to US dollar cycles.

Experts believe the reserve position remains comfortable for India’s import needs, though continued fluctuations cannot be ruled out.

Conclusion

India forex reserves slipped modestly last week despite strength in gold holdings. RBI forex data continues to show resilience, but global headwinds may keep reserves volatile in the near term.
 

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