Foreign currency assets (FCA), which make up the largest share of the reserves, stood at 574.09 billion. (image source: Canva)
India’s foreign exchange reserves surged to a record $676.3 billion as of April 4, reflecting a robust weekly increase of $10.9 billion, according to data released by the Reserve Bank of India (RBI). The spike came during a week marked by the US dollar’s decline across global currency markets, following heightened trade tensions spurred by President Donald Trump‘s tariff offensive.
Compared to end-March 2025, forex reserves have climbed by $7.9 billion and registered a year-on-year rise of $27.7 billion. The bulk of this increase was attributed to RBI’s strategic dollar purchases and valuation gains from its non-dollar assets, as global currencies appreciated against the weakening greenback.
Foreign currency assets (FCA), which make up the largest share of the reserves, stood at $574.09 billion. Analysts also noted the impact of mark-to-market gains from euro, yen, and pound-denominated holdings, as the US dollar fell on trade-related anxieties and investor risk aversion.
The Reserve Bank‘s active forex management has helped stabilise the rupee during turbulent times and enhance confidence in India’s external sector. Amid the ongoing trade war between the US and China, the sharp build-up of reserves provides India with a vital buffer to mitigate global macroeconomic shocks, maintain currency stability, and support capital inflows.
