What’s the story
The Reserve Bank of India (RBI) has reported a net sale of $2.11 billion in the spot foreign exchange market for June, according to its monthly bulletin released today.
This figure represents the difference between the central bank’s purchases and sales during that month.
The data shows that while the RBI bought nearly $15.94 billion, it sold an even larger amount at $18.04 billion within this period.
Net forward sales increase by over $5 billion
The RBI’s net outstanding forward sales also saw a significant increase in June, reaching $15.84 billion from $10.36 billion at the end of May.
This rise represents an increase of over $5 billion within a single month.
The central bank regularly intervenes in both the spot and forwards markets, as part of its strategy to manage fluctuations in the INR exchange rate.
INR strengthened against USD today
Separately, the Indian Rupee strengthened versus the US Dollar, closing at ₹83.87 today. This was because of a weaker dollar index and a fall in crude oil prices, which has softened India’s inflation and trade deficit.
