FX.co ★ India’s FX Reserves Slip Below $700 Billion as Central Bank Draws on Dollar Cushion

India’s foreign exchange reserves in U.S. dollars declined to $690.69 billion, down from a previous level of $698.49 billion, according to the latest data updated on 8 May 2026. The dip takes the headline reserve stock back below the closely watched $700 billion mark.

The movement in reserves will be closely monitored by markets as it can reflect a mix of factors, including valuation changes in reserve assets and potential intervention in the foreign exchange market. While the fall is modest in absolute terms, shifts at this scale can influence sentiment around the rupee’s stability and India’s external buffer.

Investors and analysts will now be watching subsequent releases to see whether this decline marks the start of a trend or a temporary adjustment in India’s FX reserve position.