In July, the Indian rupee had its worst decrease since September 2022, falling 2%.
According to figures issued Monday as part of the central bank‘s monthly bulletin, the Reserve Bank of India (RBI) sold a net $2.54 billion in the spot foreign currency market in July. The RBI claimed to have sold $2.54 billion and made no purchases of dollars. The central bank sold $3.6 billion on the spot market in June.
In July, the Indian rupee had its worst decrease since September 2022, falling 2%. According to the statistics, the RBI’s net outstanding forward sale at the end of July was $57.85 billion, down from $60.4 billion at the end of the previous month.
To reduce exchange rate volatility, the central bank makes interventions in the forward and spot markets.
The RBI probably stepped in to relieve pressure on the local currency amid worries about high U.S. tariffs and a raise in the visa fee, which is why the Indian rupee finished Wednesday barely changed at 88.69 against the US dollar.