RBI bought $2.5 billion in January on a net basis, shows bulletin

The Reserve Bank of India purchased $2.52 billion in the foreign exchange market on a net basis in January, marking its first such purchase in eight months, even as the rupee continued to face headwinds at the time.

 

The RBI purchased nearly $28 billion and sold $25.47 billion in January, the central bank said in its monthly bulletin released on Monday. In December, it sold a net $10 billion in the market.

 

The Indian rupee fell to its then-record low of 91.9875 on January 30, pressured by worries over a then-ongoing trade stalemate with the U.S. and persistent foreign outflows.

 

 

The currency fell 2.3% in January and, after a fleeting recovery in February, came under pressure again and fell to nearly 94 per dollar on worries about the economic risks raised by war in the Middle East.

 

The RBI's net outstanding forward dollar sales stood at $67.37 billion as of end-December, compared with November's net sale of $62.35 billion, data showed.

 

India's central bank intervenes in the spot and forward markets to curb exchange rate volatility.