India forex reserves rise by $1.689 billion to reach $688.94 billion in the week ended Dec. 12, the Reserve Bank of India said Friday, attributing the increase to higher gold holdings and stable market management. Gold And SDR Holdings Push Reserves HigherIndia forex reserves increased for a second consecutive week, reaching $688.94 billion, according to data released by the Reserve Bank of India. During that period, gold reserves had climbed $1.188 billion to $106.984 billion, while SDRs rose $93 million to $18.721 billion. Analysts say strong reserve buffers help India manage external shocks, support the rupee and reassure investors amid fluctuating global interest rates and geopolitical risks. Economists note that India forex reserves, along with rising gold holdings and strong FDI inflows, provide the country with a cushion against external pressures while supporting overall macroeconomic stability.

Source: The Hindu December 29, 2025 09:55 UTC