India’s central bank net sold $10 billion in December to curb Indian rupee volatility, bulletin shows
- The RBI’s net outstanding forward dollar sales stood at $62.3 billion as of end-December
MUMBAI: The Reserve Bank of India sold a net of $10.02 billion in the foreign exchange market in December, data released on Friday showed, reflecting the central bank’s efforts to support the currency that was the worst emerging market performer last year.
The RBI said in its monthly bulletin that it purchased $18.33 billion and sold $28.35 billion in December. In November, the central bank had sold a net of $9.7 billion in the market.
The Indian rupee fell to its then-record low of 91.0750 on December 16, pressured by worries over a trade stalemate with the U.S. and persistent foreign outflows.
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The currency fell nearly 0.4% in December and extended its decline past the 91 mark in the next month, before rebounding on the back of a U.S.-India trade deal announcement early in February.
The RBI’s net outstanding forward dollar sales stood at $62.3 billion as of end-December, compared with a net sale of $66.04 billion at the end of the previous month, data showed.
India’s central bank intervenes in the spot and forward markets to curb exchange rate volatility.
The rupee closed at 90.9825 on Friday, logging its steepest weekly fall in a month as tepid risk appetite globally weighed.
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