RBI net sells $9.2 bn in October, highest monthly sale since September 2022

The Reserve Bank of India (RBI) net sold $9.2 billion in October, the highest monthly sale in more than two years, since September 2022, when the RBI had net sold $10.3 billion worth of the greenback. According to the central bank's monthly bulletin, the RBI bought $27.5 billion and sold $36.7 billion of foreign currency in October.

 

The rupee had breached the 84 per dollar mark on October 11 of the current year.

 

“The 83.98 per dollar level saw aggressive intervention by the RBI, which is being reflected,” said a foreign exchange dealer at a state-owned bank.

 

The rupee depreciated by 0.34 per cent in October. Since October 11, the local currency has depreciated by 1.44 per cent, moving past the 85 per dollar mark.

 

“At the end of October, we saw massive outflows because of the US elections, and the dollar became stronger,” said a foreign exchange dealer at another state-owned bank. “The RBI was there at all levels to contain volatility,” he added.

 

However, the RBI was a net buyer of dollars in the first half of the current financial year (April-September), with $8.52 billion worth of US dollars purchased during the period.

 

In the current calendar year up to October, the central bank net bought $23.07 billion.

 

In September, the RBI had net bought $9.6 billion worth of foreign currency. During the period, the central bank bought a net total of $28.9 billion, while it sold $19.2 billion of foreign currency.

 

In the current financial year and calendar year, the RBI has been a net seller of dollars in four months—April, June, August, and October.

 

The central bank had net sold $310 million in October 2023. In the previous financial year, the RBI net bought $41.27 billion.

 

The RBI’s net outstanding forward sales by the end of October stood at $49.18 billion, compared to $14.58 billion in September.