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.
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.