Record FX Reserves
India’s foreign exchange reserves climbed sharply in the week ending February 13, 2026, rising by $8.66 billion to a new all-time high of $725.72 billion according to the Reserve Bank of India. This marks a significant increase in the country’s external financial buffer, reflecting strong macroeconomic fundamentals.
The surge in reserves was mainly driven by valuation gains in foreign currency assets and gold, supported by a weaker U.S. dollar and increased global market volatility. These gains underscore continued confidence from global investors and enhance India’s capacity to manage currency fluctuations and external shocks.
Record high reserves provide India with increased ability to stabilize the rupee and respond to sudden shifts in global capital flows. Traders often view strong reserve positions as a buffer against currency risk, potentially influencing risk sentiment in emerging market FX pairs.
Amid persistent global uncertainties—including divergent central bank policies and geopolitical tensions—India’s reserve strength may serve as a stabilizing factor for its currency and financial markets. Larger reserve buffers also support confidence in sovereign creditworthiness and foreign investment prospects.