India forex reserves fall $9.99bn as gold drops in 2026

What the latest RBI data showed

India’s foreign exchange reserves registered their steepest weekly fall in months, declining by $1.985 billion to $171.625 billion in the week ended June 12, as per Reserve Bank of India (RBI) data released on Friday. The drop followed a smaller fall of $111 million in the previous reporting week, when reserves stood at $181.610 billion. The headline decline was driven mainly by a sharp reduction in the value of the RBI’s gold holdings during the week. Even with the overall drop, one key component moved in the opposite direction: foreign currency assets (FCAs) rose modestly. The weekly numbers matter because they offer a timely view of how India’s external buffers are moving amid currency market volatility and valuation changes.

Breakdown: FCA up, gold down sharply

The RBI data showed foreign currency assets increased by $146 million to $144.290 billion in the week ended June 12. FCAs are the largest portion of India’s reserves and can be influenced by valuation movements in non-US currencies held by the RBI, such as the euro, pound sterling, and Japanese yen. In contrast, gold reserves fell sharply by $10.754 billion to $103.821 billion, pulling the total reserves lower. The data also showed Special Drawing Rights (SDRs) declined by $16 million to $18.699 billion. India’s reserve position with the IMF eased by $11 million to $1.815 billion.

Key forex reserves components (week ended June 12)

The Bloomberg report and the subsequent retraction

The weekly fall in gold reserves drew attention after a Bloomberg report suggested the RBI may have sold part of its gold reserves to support foreign currency assets. That report triggered discussion before it was retracted, after Bloomberg said there was an error in the valuation methodology used. The retraction note said the story had incorrectly used same-day gold prices to value the RBI’s gold reserves. Using the previous day London Bullion Market Association (LBMA) price showed that gold holdings were unchanged in May, according to the corrected assessment cited in the text provided. The episode highlighted how valuation assumptions can materially change interpretations of official reserve data.

How to read FCA figures in RBI reserve data

FCA movements are not only about purchases or sales of dollars by the central bank. The RBI has noted that, expressed in dollar terms, FCAs also include the impact of movements in non-US currencies held in the reserves. This is important when the euro, pound, or yen move sharply against the US dollar within a reporting week. A rise in FCAs alongside a drop in total reserves is possible when another component, such as gold, moves more significantly in the opposite direction. The June 12 week shows this dynamic clearly, with a relatively small FCA increase unable to offset the much larger fall in gold.

Recent context: March saw large weekly declines too

The June 12 fall came after several large weekly changes reported earlier in 2026. RBI data cited in the provided text showed reserves fell by $11.413 billion to $198.346 billion in the week ended March 20, driven largely by a decline in gold reserves even as FCAs rose. In the following week ended March 27, reserves were reported at $188.06 billion, a weekly drop of $10.29 billion. The RBI data for March 27 also pointed to declines being linked to RBI actions in the forex market.

What RBI-linked reports said about intervention and the rupee

In the March period referenced, the decline in reserves was “largely attributed” to RBI intervention in the forex market to support the rupee, amid global uncertainty, according to the text provided. The explanation in that section says the central bank had been selling dollars and taking policy measures to stabilise the currency. For the week ended March 27, foreign currency assets were reported to have fallen by $1.62 billion to $151.07 billion, while gold reserves dropped by $1.67 billion to $113.52 billion. These figures show that both valuation and market operations can drive weekly changes.

Selected reserve levels mentioned in the report

Why gold valuation can swing headline reserves

Gold is reported in value terms, so a sharp weekly change can reflect price and valuation moves, not only transactions. The June 12 data shows gold reserves down by $10.754 billion in one week, far larger than the increase in FCAs. The Bloomberg correction, which focused on the choice of gold price used for valuation, also reinforces that interpretation of gold movements depends heavily on methodology. For market participants, the key is to separate what is known from the data (the reported levels and weekly changes) from claims that require confirmation (such as whether any gold was sold).

Market impact and what investors track next

The immediate market takeaway from the June 12 release is that India’s headline reserves fell despite an uptick in FCAs, because the gold component moved sharply lower. Investors and currency watchers typically monitor whether FCA trends indicate sustained intervention and whether reserve levels stabilise after large weekly changes. The RBI’s weekly release also provides a clear view of movements in SDRs and the IMF reserve position, both of which edged lower in the latest week. Future weekly releases should help clarify whether the gold decline persists or reverses, and how FCAs evolve alongside currency market conditions.

Conclusion

RBI data for the week ended June 12 showed India’s forex reserves fell to $171.625 billion, with the drop dominated by a $10.754 billion fall in gold reserves even as FCAs rose to $144.290 billion. The Bloomberg story and its retraction kept attention on how gold valuation is measured and interpreted. The next set of RBI weekly data will be closely watched for whether the decline remains concentrated in gold or broadens across components.