Mumbai, Aug 29
The Reserve Bank of India (RBI) sold $3.66 billion in the spot foreign exchange market in June, according to the central bank’s monthly bulletin.
The central bank reported purchasing $1.16 billion and selling $4.83 billion during June. Before this, the bank had bought $1.76 billion from the spot market in May.
In June, the domestic currency faced pressure from uncertainty over US tariffs and foreign investors pulling money out of India. The RBI took the path of selling dollars to prevent the rupee from falling too sharply in value.
Meanwhile, India's external sector showed resilience, with only a modest current account deficit and forex reserves sufficient to cover 11 months of imports.