The Reserve Bank
continued to remain net buyer of the US currency in April after it bought $566 million from the spot market.
This was second consecutive month in the current fiscal when RBI
net bought dollars from the spot market.
The central bank
purchased $1.751 billion of dollars in the reporting month, while sold $1.185 billion in the spot market.
In March, RBI
had net purchased $3.538 billion from the spot market.
RBI's intervention in forex
market is to contain excessive volatility in the domestic currency.
In April 2016, RBI
was a net buyer ($1.339 billion) of dollar after it purchased $2.639 billion and sold $1.30 billion in the spot market.
In the entire fiscal 2016-17, RBI
net purchased $12.351 billion of the US currency. It had bought $71.764 billion from the spot market and sold $59.413 billion in the previous fiscal. In the financial year 2016, RBI
was net purchaser of $10.209 billion.
In the forward dollar market, the outstanding net purchase at the end of April was $13.553 billion, RBI
Net forward purchase at March-end was $10.835 billion.