RBI net seller of dollars in August, sells $1.559 bn

RBI intervention in foreign exchange market is generally aimed at curbing volatility in currency market

After remaining net purchaser of dollars for the first four months of the current fiscal, the Reserve Bank sold a net of $1.559 billion in August in the spot market.

RBI intervention in the foreign exchange market is generally aimed at curbing volatility in the currency market.

The central bank bought $4.486 billion from the market while it sold $6.045 billion in the reporting month, RBI said in its monthly bulletin release.

Last year, in August RBI had sold $511 million on a net basis.

The central bank had net purchased $169 million in July this year. It had bought $4.123 billion and sold $3.954 billion in the spot market.
 
The net amount purchased by RBI in April and May was $5.431 billion and $2.578 billion respectively.

In FY15, RBI was net purchaser of $54.837 billion, when it had bought $124.414 billion and sold $69.577 billion.

In the forwards dollar market, the outstanding net forward purchase at the end of August stood at $2.901 billion as against purchase of $4.599 billion as of end July.