Onlykashmir.in News Desk
India’s foreign exchange reserves surged to a fresh all time high, climbing $12.422 billion in a single week to reach $729.328 billion for the period ended August 21, according to data released by the Reserve Bank of India on August 28. The sharp weekly jump marks the largest increase in recent months and pushes the reserves comfortably past the previous record.
In the preceding reporting week, the reserves had already risen by $9.905 billion to touch $716.907 billion, indicating a sustained build up over consecutive weeks. The earlier all time high stood at $728.494 billion, a level attained during the week ended February 27, 2026, just before the onset of the Middle East conflict disrupted global markets and triggered volatility across emerging economies including India.
Geopolitical tensions arising from that conflict had led to several weeks of decline in the reserves, as the Indian rupee came under pressure and the Reserve Bank was compelled to intervene in the forex market through dollar sales to stabilise the currency. The latest data suggests that pressure has eased considerably, allowing the central bank to rebuild its reserve cushion at a rapid pace over the past fortnight.
Foreign currency assets, which form the largest component of the overall reserves, rose by $9.482 billion to reach $591.333 billion for the week ended August 21, according to the central bank’s figures. Expressed in dollar terms, foreign currency assets also capture the effect of appreciation or depreciation in non dollar currencies held within the reserves, including the Euro, the Pound and the Yen, meaning currency movements among these units can influence the headline figure independent of fresh dollar inflows.
A robust forex reserve position gives the Reserve Bank greater room to manage currency volatility, meet import obligations and maintain investor confidence in India’s external sector stability. Economists typically view a growing reserve buffer as a sign of resilience against external shocks, particularly at a time when global markets remain sensitive to geopolitical developments. The Reserve Bank is expected to continue publishing weekly reserve figures as part of its regular disclosure, with analysts watching closely to see whether the current momentum in reserve accumulation extends into the coming weeks amid ongoing global economic uncertainty.
