RBI Sells $7.7 Billion to Support Rupee Amid August Slump
The Reserve Bank of India (RBI) sold a net $7.7 billion in the spot foreign exchange market in August to support the Indian rupee, which fell 0.68% during the month, according to data released on Monday. The central bank did not purchase any dollars in the period, compared with a net sale of $2.54 billion in July, signaling a more aggressive intervention to stabilize the currency.
The Indian rupee slipped to 88.1950 against the U.S. dollar in August, crossing the 88-per-dollar mark for the first time. The RBI’s net outstanding forward sales stood at $53.36 billion at the end of August, slightly down from $57.85 billion at the end of July, reflecting ongoing efforts to curb exchange rate volatility through both spot and forward market interventions.
On Monday, the rupee recovered slightly to 87.9275 per U.S. dollar, as state-run banks, likely on behalf of the RBI, stepped in to reinforce support near the 88 mark. The central bank continues to monitor and manage currency fluctuations to maintain stability in India’s foreign exchange market.
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