RBI sold $7.6 bn in August amid rupee pressure; Reer falls to 97.6

The central bank remained a net dollar seller for the fourth straight month as the rupee weakened; REER slipped further, signalling lower currency competitiveness

The central bank did not purchase dollars for the second consecutive month amid pressure on the rupee. The Reserve Bank of India (RBI) sold $7.6 billion in August, compared with $2.5 billion in July.

 

During the current financial year (2025-26), the RBI was a net buyer of the greenback only in May, remaining a net seller in the other four months — April, June, July, and August.

 

The outstanding net short-dollar position in the rupee forward market fell further to $53.35 billion by the end of August, down from $57.85 billion at the end of July. 

 

 

As of September 2025, the real effective exchange rate (REER) of the Indian rupee fell further to 97.6, from 98.8 in August. In May, REER had increased after five consecutive months of moderation since December 2024. Prior to the decline, the REER had risen steadily from 103.66 in January 2024 to a peak of 108.14 in November.

 

REER adjusts the nominal effective exchange rate to account for inflation differentials between India and its major trading partners.

 

A REER value above 100 indicates an appreciation of the rupee relative to the base year, potentially making Indian exports less competitive in global markets.