RBI net sold forex worth $3.66 billion in June in spot market amid rupee volatility

Indian rupee

The Reserve Bank of India (RBI) sold $3.66 billion in the spot foreign exchange market in June, according to the central bank’s monthly Bulletin.

This, after it purchased $1.76 billion in May from the spot market.

The central bank in the Bulletin said that it purchased $1.16 billion and sold $4.83 billion during the period.

The RBI Bulletin is a monthly publication that offers insights into the developments in domestic and global economies but doesn't represent the views of the central bank.

In June, the domestic currency was under pressure due to US tariffs related uncertainty.

India’s external sector remained resilient with a modest current account deficit and forex reserves covering 11 months of imports.

The Indian rupee depreciated marginally against the US dollar in July, reflecting ongoing global trade uncertainties and FPI outflows, RBI bulletin said.

Despite such depreciation, the rupee remained one of the least volatile currencies among major EMDEs during the month. In August, the Indian currency registered some gains against the US dollar following the announcement of S&P’s upgrade of India’s sovereign rating, bulletin added.