India’s foreign exchange reserves stood at a healthy $682.3 billion as of May 29, RBI Governor Sanjay Malhotra said during the Monetary Policy Committee meeting on Friday.India’s foreign exchange reserves have had a turbulent yet revealing journey over the last months, reflecting both the strength of the country’s external position and the pressures facing the rupee.The period began on a positive note in early April. However, the trend reversed towards the end of April and through May.Reserves slipped by $4.82 billion to $698.49 billion in the week ended April 24, before dropping more sharply by $7.79 billion to $690.69 billion in the week ended May 1.The decline deepened over subsequent weeks, with reserves falling to $688.89 billion as of May 15 and then to $681.38 billion by May 22.Much of this decline was due to the central bank’s efforts to cushion the rupee from excessive volatility.As global uncertainties intensified and pressure on emerging-market currencies increased, the RBI actively used its forex arsenal while also deploying liquidity measures.As of June 5, 2026, India’s forex reserves remain comfortably above $680 billion despite the recent correction.While the fall from April’s peak levels may appear significant, the broader picture suggests a central bank willing to use its reserves strategically to preserve currency stability.