MUMBAI — The Reserve Bank of India (RBI) sold a net $7.7 billion in the spot foreign exchange market in August to stem the rupee’s decline, according to data released in the central bank’s latest monthly bulletin on Monday.
The intervention came as the Indian rupee slipped 0.68% during the month, closing at 88.1950 per U.S. dollar, marking the first time the currency breached the 88-per-dollar level. The RBI did not purchase any dollars in August, focusing solely on sales to arrest the rupee’s slide. In July, the central bank had sold a net $2.54 billion in the spot market.
Data also showed that the RBI’s net outstanding forward sales stood at $53.36 billion at the end of August, down from $57.85 billion the previous month, suggesting continued efforts to manage exchange rate volatility through both spot and forward operations.
The RBI frequently intervenes in the foreign exchange market — directly or through state-run banks — to smooth out sharp currency movements and prevent excessive depreciation.
On Monday, the rupee settled marginally stronger at 87.9275 per U.S. dollar, with traders indicating that the RBI may have again entered the market to reinforce support around the 88 level.
The central bank’s steady interventions underline its resolve to maintain currency stability amid persistent global dollar strength and foreign capital outflows from emerging markets.