The Reserve Bank of India offloaded a net $2.54 billion in the spot foreign exchange market in July, according to its latest monthly bulletin released on Monday.
The central bank made no dollar purchases during the month, marking a continued effort to manage rupee volatility. This follows a net sale of $3.6 billion in June, indicating sustained intervention amid shifting global capital flows and currency pressures.
Reserve Bank of India’s net outstanding forward dollar sales eased to $57.85 billion at the end of July, down from $60.4 billion a month earlier, reflecting a measured pullback in its currency hedging stance.
The central bank continues to rely on both spot and forward market interventions to limit sharp swings in the rupee.
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On Wednesday, the rupee closed nearly flat at 88.69 per U.S. dollar. Traders pointed to likely RBI intervention as the currency faced renewed pressure amid fears of higher U.S. tariffs and a hike in visa fees, factors that could strain external balances.
