At $20 bn, RBI makes highest-ever dollar sales in spot markets in a month

The Reserve Bank of India (RBI) sold $20 billion in March on a net basis in the spot markets — the highest ever in a month. In March, the rupee fell to an all-time low on March 7, as it approached the 77/$ mark — a level the made an effort to protect, according to currency dealers. The Indian currency finally breached the 77/$ level earlier this month.

On Wednesday, the rupee hit an all-time closing low of 77.58/$. The previous highest sale of dollars was in October 2008 when the sold $18.66 billion. The central bank has been intervening in all segments of the currency market, which has slowed the pace of rupee depreciation. The Indian unit came under pressure since the Russian invasion of Ukraine that resulted in a surge in commodity prices.


As a result, the turned hawkish that has made investors rush for safe haven assets. Following heavy dollar selling by the RBI, the country’s foreign exchange reserves have fallen around $35 billion since the war broke out in late February this year.

The foreign exchange reserves touched an all-time high in September last year after hitting $642.4 billion. According to the latest figures, foreign exchange reserves were at $595.95 billion as on May 6, 2022

Source link

Free Course

"Double Your Traffic in 30 days" + Secret Bonus

valued at $299

This amazing course will teach you, step by step, how to double if not triple your traffic over the next 30 days.

100% Privacy. We will never spam you!