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Home.forex news reportRBI net sold $10 billion in December to curb rupee volatility

RBI net sold $10 billion in December to curb rupee volatility

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The Reserve Bank of India sold ​a net of $10.02 ​billion in the foreign exchange ​market in December, data released on Friday showed, reflecting the central bank’s efforts to support the currency that was ‌the worst emerging ⁠market ⁠performer last year.

The RBI said in its monthly ​bulletin that it purchased $18.33 billion and sold $28.35 billion in ​December. In November, the central bank had sold a net of $9.7 billion in the market.

The ​Indian rupee fell to ⁠its then-record ‌low of 91.0750 on December 16, ​pressured ​by worries over a trade stalemate with ⁠the U.S. and persistent foreign outflows.

The currency ​fell nearly 0.4% in December ​and extended its decline past the 91 mark in the next month, before rebounding on the back of a U.S.-India trade deal announcement early in February.

The RBI’s net outstanding forward ‌dollar sales stood at $62.3 billion as of end-December, compared with a ​net sale ​of $66.04 billion ⁠at the end of the previous month, data showed.


India’s central bank intervenes in the spot and ​forward markets to curb exchange rate volatility.

The rupee closed at 90.9825 on Friday, logging its steepest weekly fall in a month as tepid risk appetite globally weighed.



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