Mumbai: The Reserve Bank of India (RBI) sold USD 7.7 billion in August to curb exchange rate volatility and stem the rupee’s decline against the US dollar.
According to the RBI’s latest bulletin on foreign exchange operations, the central bank’s net dollar sales stood at USD 7.69 billion in August—nearly three times higher than in the previous month. The data further showed that the RBI made no dollar purchases in either July or August.
While the RBI maintains that it does not target any specific level or band for the rupee-dollar exchange rate, it intervenes in the forex market to contain excessive volatility.
During August, the rupee weakened by 1.6 per cent against the US dollar. The depreciation continued into September amid rising trade tensions, global uncertainties, and sustained foreign portfolio investment outflows.
