Economic news

Indian Cenbank Net Sold $11.88B in Oct to Arrest Rupee's Fall, Bulletin Shows

MUMBAI, Dec 22 (Reuters) - The Reserve Bank of India sold a net $11.88 billion in the foreign exchange market in October, data released on Monday showed, reflecting the central bank's efforts to support the rupee.

The RBI said in its monthly bulletin that it purchased $17.69 billion dollars and sold $29.56 billion during the month. In September, the central bank had net sold $7.91 billion in the spot market.

The rupee closed at 88.7650 against the U.S. dollar in October, having hit 88.80 in late September, which was a record low at the time.

The RBI's net outstanding forward sales stood at $63.61 billion as of end-October, up from $59.41 billion at the end of the prior month, the data showed.

The central bank intervenes in the spot and forward markets to curb exchange rate volatility.

The rupee hit a record low of 91.075 last week before recovering on the back of the RBI's intervention. On Monday, it closed down 0.43% at 89.65.

Reporting by Ashwin Manikandan; Editing by Varun H K

Source: Reuters


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