India's Forex Reserves Dip For First Time In Two Months

India's foreign exchange reserves declined for the first time in two months but remained near its 2025 high. The country's forex kitty dropped $2 billion over the previous reporting week to $686 billion for the period ended May 2, according to data from the Reserve Bank of India on Friday.

The reserves added $1.98 billion in the week ended April 25.

India ranks as the fourth-largest holder of foreign exchange reserves, sufficient to cover nearly a year of imports. The country's forex holdings are the fourth largest, after China, Japan, and Switzerland.

Reserves have steadily recovered after a steep fall from their peak of $700 billion at the end of September.

Besides, foreign investors have pulled out nearly $9 billion from the country's debt and equity markets so far this year, according to data from the National Securities Depository Ltd.

For the week ended May 2, foreign currency assets—a major component of the reserves—rose to $581 billion, according to the RBI data. In dollar terms, foreign currency assets include the effect of the appreciation or depreciation of non-US units like the euro, pound, and yen held in foreign exchange reserves.

Gold reserves decreased by $2.5 billion to $81.8 billion during the week.