The Reserve Bank continued to remain the net purchaser of US currency after it bought $1.259 billion in September from the spot market. In the reporting month, the central bank bought $3.788 billion, while it sold $2.529 billion in the spot market, according to the latest RBI data. In August too, the central bank was net purchaser of 3.226 billion of the greenback, buying $4.556 billion and selling $1.330 billion in the spot market. The RBI intervenes in the foreign market to contain volatility in the rupee and not set a price band. Last year in September, the RBI had net purchased $4.649 billion and had sold $4.392 billion, while it bought $ 9.041 billion from the spot market. In FY17, it net purchased 12.351 billion of the US currency as it bought $71.764 billion and sold $59.413 billion in the spot market. In the financial year 2016, the central bank was again a net buyer to the tune of $10.209 billion. In the forward dollar market, the outstanding net purchase at the end of September was $31.131 billion, while the net forward purchase at the end of August was $32.823 billion, the data showed.
RBI remains net buyer of dollar in Sept, snaps up $1.3 bn from spot market
RBI intervenes in the foreign market to contain volatility in the rupee and not set a price band
Press Trust of India |