RBI Sells $7.7 Billion to Stabilize Rupee in August
The Reserve Bank of India (RBI) intervened heavily in currency markets during August, selling USD 7.7 billion to curb exchange rate volatility and arrest the rupee’s decline against the US dollar.
Key Takeaways
- RBI sold USD 7.69 billion in August – nearly triple July’s intervention
- Central bank purchased no dollars in July or August
- Rupee depreciated 1.6% against dollar in August amid global uncertainties
According to data published in the RBI’s latest bulletin, the central bank’s net dollar sales reached USD 7.69 billion in August, marking a nearly three-fold increase compared to the preceding month.
The RBI maintains its official position of not targeting any specific exchange rate level, intervening only during periods of excessive volatility in the forex market.
In August, the rupee depreciated by 1.6% against the US dollar, with the decline continuing into September amid elevated trade tensions, heightened global uncertainties, and persistent foreign portfolio investment outflows.
