RBI intervenes the most in 17 months in Nov
The Reserve Bank of India (RBI) bought a net USD 870 million from the currency market in November, taking net purchases in 2010 to USD 1.85 billion, its monthly bulletin showed on Wednesday.
January 12, 2011 / 16:43 IST
The Reserve Bank of India (RBI) bought a net USD 870 million from the currency market in November, taking net purchases in 2010 to USD 1.85 billion, its monthly bulletin showed on Wednesday.
The RBI bought USD 1.37 billion, while it sold USD 500 million in November compared with only purchases of USD 450 million in October.On a net basis, it is the RBI's biggest monthly intervention since June 2009, when it had bought USD 1.04 billion.In the current fiscal year that began in April 2010, the bank has so far purchased a net USD 1.69 billion from the market.The rupee moved in a wide band of 44.1950 to 46.12 per dollar in November and dropped 3.2% on the month, its biggest monthly fall since May.In 2009, the central bank sold a net USD 5.8 billion to prevent the rupee from depreciating sharply. The rupee had dropped to a record low of 52.2 per dollar in March 2009, but ended the year 4.7% higher, boosted by foreign fund inflows of USD 17.5 billion.Foreign funds bought a record USD 29.3 billion worth of shares in 2010 helping the rupee gain 4.1%. However, so far in 2011, they are net sellers of around USD 250.2 million.At 3:58 pm (1028 GMT), the partially convertible rupee was at 45.09/10 per dollar, stronger than 45.1625/1725 at close on Tuesday. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
