The Reserve Bank of Bank (RBI) net sold a cumulative foreign exchange worth $34.5 billion in the financial year 2025, data released by the central bank showed, marking the highest such selloff since the peak of 2008 financial crisis, said several reports.
This comes amid significant volatility in the Indian rupee and US dollar on the back of global uncertainties.
However, RBI bought foreign exchange worth net $14.36 billion in the spot market in March, marking its first purchase after six months of selling of dollar. The central bank's bulletin said that RBI purchased $41.52 billion and sold $27.16 billion of foreign exchange during the period.
RBI has said that the financial markets remain volatile amid heightened global uncertainties, following US President Trump’s tariffs. "The US dollar faced depreciating pressures amidst rising trade policy uncertainty and ebbing investor confidence, with other AE currencies witnessing notable appreciation," the central bank said.
"Even in the recent volatile period, the Indian rupee (INR) has moved in an orderly manner and performed relatively better compared to its peers, reflecting strong macroeconomic fundamentals, adequate foreign exchange buffers and depth of our foreign exchange market," it said.
The Indian rupee (INR) appreciated by 1.3 per cent (m-o-m) in April 2025 and remained one of the least volatile major currencies globally, RBI bulletin further read. 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.
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