India’s c. bank sells $6.49b in forex market

The Reserve Bank of India (RBI) intervened in the foreign exchange market during August, selling a net amount of $6.49 billion. This marks a reversal from July, when the RBI bought a net of $6.93 billion.

The central bank’s monthly bulletin released on Monday revealed that it purchased $16.14 billion and sold $22.64 billion in the spot forex market in August actions to curb exchange rate volatility

Despite this intervention, the Indian rupee weakened 0.2 per cent against the dollar, marking its second consecutive monthly decline.

In addition to spot market interventions, the RBI also engages in forward market operations. The central bank’s net outstanding forward dollar sales stood at $18.98 billion at the end of August, compared to $9.1 billion at the end of July.

Attribution: Reuters

Subediting: M. S. Salama