RBI Sells 649 Billion Dollars in Spot Forex Market in August
The Reserve Bank of India sold $6.49 billion in the spot forex market in August, shifting from a net purchase in July. The rupee weakened 0.2%, continuing its decline amid a backdrop of stronger performance from other Asian currencies.
RBI Sells 649 Billion Dollars in Spot Forex Market in August
The Reserve Bank of India (RBI) sold $6.49 billion on a net basis in the spot foreign exchange market in August, as reported in the central bank's monthly bulletin released on Monday. This marks a significant shift from July, during which the RBI had purchased a net amount of $6.93 billion in the spot market.
The RBI actively intervenes in both the spot and forwards markets to manage exchange rate volatility. As of the end of August, the net outstanding forward dollar sales by the RBI totaled $18.98 billion, a substantial increase from $9.1 billion at the end of the previous month.
In August, the RBI recorded purchases of $16.14 billion while selling $22.64 billion in the spot forex market. Despite this activity, the Indian rupee weakened by 0.2% during the month, marking its second consecutive monthly decline, even as most Asian currencies rallied between 2% to 6%.
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