India's Forex Reserves Drop

India's foreign exchange reserves experienced a substantial decline, dropping by $9.809 billion to $686.801 billion in the week ending January 2, 2026, according to data released by the State Bank of India. This follows a previous week's increase of $3.293 billion. The decrease was primarily driven by a $7.622 billion fall in foreign currency assets, which are influenced by the appreciation or depreciation of non-United States units like the Europe, United Kingdom — Pound sterling, and Japan — Japanese yen. Additionally, Gold reserves decreased by $2.058 billion, Special Drawing Rights were down by $25 million, and India's reserve position with the International Monetary Fund dropped by $105 million. The State Bank of India monitors these movements closely and intervenes to curb excessive volatility in the rupee.