RBI sold net $485 mn in FX market in May

The Reserve Bank of India's (RBI) dollar sales were higher in the foreign exchange spot market in May than in April, data from the central bank showed on Tuesday.

The RBI sold $1.26 billion in May compared with $275 million in the previous month as it tried to rein in the rupee's slide, taking its total intervention in the spot market since the start of September to $22.23 billion.

It also rolled over forward dollar contracts by purchasing $778 million in May, the data showed.

In the forward dollar market, outstanding dollar sales rose to $10.31 billion in May from $3.45 billion in April, RBI data showed, indicating the central bank's preference to intervene in the forward markets to prevent the rupee liquidity from tightening further in the spot market.

The rupee fell about 6 percent in May against the dollar. It settled at Rs 55.4 to a dollar on Tuesday.