MUMBAI (Reuters) – The Reserve Bank of India (RBI) sold a net $3.86 billion in the spot foreign exchange market in August, according to data released on Thursday as part of the central bank’s monthly bulletin. The RBI said it purchased $500 million and sold $4.36 billion during the period. In July, the central bank had bought a net of $3.47 billion in the spot market. The Indian rupee depreciated by 0.6% against the dollar in August. The unit traded in a range of 82.25 to 83.16.
The RBI’s net outstanding forward purchase stood at $10.07 billion as of end-August, compared with a net purchase of $19.47 billion at the end of the previous month, the data showed.
The central bank intervenes in the spot and forwards market to curb exchange rate volatility.
