The Reserve Bank of India (RBI) sold $3.66 billion in the spot foreign exchange market in June, to keep rupee stable, according to the central bank’s monthly bulletin.
In June, the domestic currency faced pressure from uncertainty over US tariffs and foreign investors pulling money out of India.
Meanwhile, India’s external sector showed resilience, with only a modest current account deficit and forex reserves sufficient to cover 11 months of imports.
The rupee was one of the least volatile currencies in July among major emerging market and developing economies (EMDEs) despite marginal depreciation. In August, the Indian currency registered some gains against the US dollar following the announcement of S&P’s upgrade of India’s sovereign rating, the RBI bulletin added.
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