India’s foreign exchange reserves surged by $8.663 billion to reach a fresh all-time high of $725.727 billion in the week ended February 13, according to data released by the Reserve Bank of India on Friday. The sharp rise comes after a decline of $6.711 billion in the previous reporting week ended February 6, when reserves had fallen to $717.064 billion. The earlier record high of $723.774 billion was recorded in January.

A significant contributor to the latest increase was the rise in foreign currency assets (FCAs), which form the largest component of the overall reserves. FCAs climbed by $3.55 billion to $573.603 billion during the reporting week. These assets reflect the value of foreign currencies held by the central bank and are influenced by movements in global currency markets.

In dollar terms, foreign currency assets include the impact of appreciation or depreciation of non-US currencies such as the euro, pound sterling, and Japanese yen, which are part of India’s reserves portfolio. Fluctuations in these currencies against the US dollar can affect the overall valuation of reserves even without fresh inflows.

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Meanwhile, the value of gold reserves recorded a sharp increase of $4.99 billion, taking the total to $128.466 billion. The rise in gold holdings reflects both valuation gains and continued diversification of reserve assets amid global economic uncertainties. The latest data underscores the resilience of India’s external sector position, with record-high reserves providing a strong buffer against global volatility. Robust forex reserves enhance the country’s ability to manage currency fluctuations, meet external obligations, and maintain investor confidence in the financial system.

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