RBI’s rupee defence at 3-year high, $38 billion sold in January–September

Indian Rupee

The Reserve Bank of India’s intervention in the spot currency market hit a three-year high in the January-September period, as it stepped in to defend the rupee amid domestic outflows and global trade uncertainties.

The move underscores the RBI’s presence in the currency market, though it doesn’t target any specific rupee level but does look to curb excessive volatility.

Experts said the intervention was not only in the spot market but also in the Non-deliverable Forward (NDF) market.

How much has the RBI spent?

RBI data compiled by Moneycontrol shows that the central bank sold a record $37.99 billion in dollars in January-September —  the highest for any nine months since 2022. The RBI sold $58.255 billion between January and September 2022.

So far, in FY26 (April–September 2025), the RBI has sold $23.5 billion in the spot forex market to support the rupee.

Usually, when the central bank intervenes in the spot market, it spends from its foreign exchange reserves.

Why is the rupee depreciating?

The rupee has weakened in the last few months due to heightened global headwinds, including the 50 percent tariff imposed by the United States on Indian goods, and continued foreign portfolio outflows.

On November 21, the rupee sank to a new low of 89.46 against the US dollar on high demand and low support from the RBI.

Since then, the central bank has been intervening in the market to prop up the rupee.

How much has the currency depreciated?

The rupee has depreciated 4.10 percent, so far, in the calendar year and 4.26 percent in the fiscal, Bloomberg data show.

The rupee is the worst-performing currency this year after the Indonesian rupiah, which has depreciated 3.36 percent and the Philippine peso, which has fallen 1.73 percent.

It is the second-worst performing Asian currency this fiscal after the Japanese Yen, down 4.36 percent.

Experts are of the view that the central bank would likely continue to intervene in the market till the volatility persists.