RBI continues to support the rupee

While the rupee has depreciated 11 per cent between September 2011 and November 2012, the Reserve Bank of India sold $22.3 billion in the spot market during that period. During the same time, the country’s foreign exchange reserves depleted by $25 billion. While there was a expectation in the market that RBI might now boost its foreign exchange reserves, as foreign institutional investors’ inflows were expected to support the rupee, the central bank, in fact, stepped up its dollar sales in November, latest data show (Click on graphic)