The Reserve Bank of India (RBI) purchased a net $561 million in the foreign exchange market in June, reversing three consecutive months of net sales, according to the central bank’s monthly bulletin.
During the month, the RBI bought $30.89 billion and sold $30.33 billion in foreign exchange, reflecting its market interventions and capital inflow absorption efforts. The net purchases followed net sales of $6 billion in May and $8.9 billion in April, as the central bank sought to stabilize the Indian rupee amid volatility.
The Indian rupee hit a record low of 96.96 per dollar in May, driven by rising oil prices tied to the Middle East conflict. The currency subsequently stabilized following policy measures introduced by the RBI in early June, which included incentives to attract capital inflows.
Between June 8 and August 21, the central bank received nearly $73 billion in inflows, primarily channeled through a zero-cost hedging facility for banks’ overseas foreign exchange deposits. The RBI’s net outstanding forward dollar sales totaled $103.3 billion at the end of June, down from $106.7 billion at the end of May, indicating reduced forward-market intervention.
The central bank’s gold reserves remained unchanged at 880.52 metric tonnes since May 22, maintaining its holdings steady amid the currency stabilization efforts.
