The Reserve Bank of India (RBI) purchased a net $561 million in the foreign exchange market during June, according to data released Friday. The central bank’s spot market activity totaled $30.89 billion in purchases and $30.33 billion in sales for the month, reflecting a modest net accumulation of foreign currency reserves.
Outstanding net dollar forward sales declined to $103.3 billion at the end of June, down from $106.7 billion at the end of May. The reduction follows a period of heightened intervention to stabilize the Indian rupee, which touched a record low of 96.96 per dollar in May amid surging oil prices tied to Middle East geopolitical tensions.
The RBI’s policy measures introduced in early June helped restore currency stability, coinciding with a surge in capital inflows. Between June 8 and August 21, the central bank received nearly $73 billion in inflows, primarily from a zero-cost hedge facility for foreign currency deposits from overseas banks. The rupee’s volatility eased following these measures, supporting the central bank’s intervention strategy.
Gold reserves held by the RBI remained unchanged since May 22 at 880.52 metric tons, maintaining the central bank’s long-standing gold holdings.
