The Reserve Bank of India (RBI) sold $7.7 billion in August to mitigate exchange rate volatility and curb the depreciation of the rupee against the US dollar. According to the latest bulletin from the central bank, the net sale of US dollars reached $7.69 billion for the month, nearly tripling the amount sold in July.
Data revealed that the RBI did not engage in dollar purchases during either July or August. The central bank maintains that it does not aim for a specific level or range for the rupee-dollar exchange rate, intervening in the foreign exchange market only in instances of excessive volatility.
In August, the rupee depreciated by 1.6% against the US dollar. The depreciation continued in September, influenced by ongoing trade tensions, global uncertainties, and persistent outflows of foreign portfolio investment.
Published on October 21, 2025.
