India’s foreign exchange reserves rose above the USD 700 billion level again in the week ending October 17, 2025, reaching USD 702.28 billion. Based on RBI weekly data, the increase was USD 4.496 billion and this was the third consecutive weekly rise. For economy preparation, this is important because forex reserves signal external sector resilience, currency stability and the ability to absorb global shocks.
The main driver was a sharp rise in the valuation of gold reserves. Reported data showed gold reserves rising by USD 6.181 billion to USD 108.546 billion. During the same week, foreign currency assets declined by USD 1.692 billion to USD 570.411 billion. This means the headline increase in total reserves was not a uniform rise across all components; it was driven mainly by gold valuation. Gold prices were reported to have risen from USD 4,017 per ounce to USD 4,251 per ounce, increasing the dollar value of India’s gold holdings.
For exams, read this with RBI dollar operations, foreign currency assets and gold valuation. Forex reserves include foreign currency assets, gold, Special Drawing Rights and the reserve position with the IMF. RBI may buy or sell dollars to smooth sharp movements in the rupee; therefore, foreign currency assets can fall even when total reserves rise. For prelims, the likely focus is the date, figure, main driver and reserve components. For mains, the same fact can be used to explain external sector resilience, global-shock absorption and currency stability.