RBI sells USD 1.93 billion in spot forex market in January

The Reserve Bank of India remained net seller of dollars worth USD 1.93 billion in the spot forex market in the month of January.

As per the data of Monthly Bulletin for March 2014, the central bank purchased USD 375 million in January while sold USD 2.3 billion during the month.

However, in December RBI had purchased a net USD 3.48 billion in the spot forex market.

RBI sells and purchases dollar in the market to check currency volatility.

In the forward dollar market, the outstanding net forward sales at the end of January by the RBI stood at USD 31.85 billion, versus USD 32.61 billion in the previous month.
 

Rising for the fifth day in a row, the rupee closed at 60.85 per US today, up 22 paise from the previous close on the back of heavy capital inflows into equities.