RBI remains net buyer of greenback in September, snaps up $1.3 billion

RBI remains net buyer of greenback in September, snaps up $1.3 billion

India News

The Reserve Bank continued to remain net purchaser of the US currency after it bought USD 1.259 billion in September from the spot market. In the reporting month, the central bank bought USD 3.788 billion, while it sold USD 2.529 billion in the spot market, according to the latest RBI data. In August too, the central bank was net purchaser of 3.226 billion of the greenback, buying USD 4.556 billion and selling USD 1.330 billion in the spot market. The RBI intervenes in the foreign market to contain volatility in the rupee and not set a price band. Last year in September, the RBI had net purchased USD 4.649 billion and had sold USD 4.392 billion, while it bought USD 9.041 billion from the spot market. In FY17, it net purchased 12.351 billion of the US currency as it bought USD 71.764 billion and sold USD 59.413 billion in the spot market.In financial year 2016, the central bank was again a net buyer to the tune of USD 10.209 billion. In the forward dollar market, the outstanding net purchase at the end of September was USD 31.131 billion, while the net forward purchase at the end of August was USD 32.823 billion, the data showed.