RBI net buys $597 million in spot forex market for 3rd month in June

The Reserve Bank became net purchaser of dollars for the third consecutive month in June this fiscal as it bought $597 million from the spot market.

During the month, the apex bank bought $3.332 billion from the market, while it sold $2.735 billion, the RBI monthly data showed.

However, the amount of dollars purchased by the central bank in June dropped almost 50% as against in April and May.

In May, RBI had bought $7.981 billion from the market and sold $6.195 billion, while in April it purchased $7.85 billion and sold $1.980 billion.

In June last year, the apex bank was net seller of the US currency after it sold $2.252 billion in the spot market.

In the entire FY14, RBI net purchased $8.992 billion. It had bought $52.394 billion and sold $43.402 billion in the previous fiscal.

The central bank's intervention in the foreign exchange market is not described as increasing the forex cover but to curb volatility in the currency market.

In the forwards dollar market, the outstanding net forward sales at the end of June stood at $154 million as against sales of $11.463 billion in the previous month.