India's central bank net bought $7.41 billion in February, bulletin shows
- RBI’s net outstanding forward dollar sales stood at $77.67 billion as of end-February
MUMBAI: The Reserve Bank of India purchased $7.41 billion in the foreign exchange market in February on a net basis, marking the second straight month of net dollar buys, data from a bulletin showed on Thursday.
The Indian rupee rose 1% in February to post its first monthly gain in 10 months on the announcement of a trade deal between India and the U.S.
During the month, the RBI purchased $21.4 billion and sold $13.99 billion. In January, it had net bought $2.5 billion.
The RBI’s net outstanding forward dollar sales stood at $77.67 billion as of end-February, compared with $67.77 billion at the end of the previous month.
India’s inflation risks rise on supply-side disruptions, central bank says
The rupee’s recovery proved fleeting as the Iran war disrupted global energy markets, sparking a record pace of foreign portfolio outflows from Indian stocks and bonds.
The currency fell to a record low of 95.21 in late March but has since been shored up by central bank measures to curb speculative trading. The rupee closed at 93.50 per U.S. dollar on Thursday.
India’s central bank intervenes in the spot and forward markets to curb exchange rate volatility.
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