In October 2024, the Reserve Bank of India (RBI) net sold $9.2 billion, marking the highest monthly sale of foreign currency since September 2022, when it sold $10.3 billion. As per the RBI’s monthly bulletin, it purchased $27.5 billion and sold $36.7 billion during the month.
On October 11, the rupee weakened past the 84-per-dollar mark, prompting aggressive intervention by the RBI. According to a foreign exchange dealer from a state-owned bank, the central bank acted decisively at the 83.98 level to curb market volatility. The rupee depreciated by 0.34% during October and further by 1.44% after October 11, crossing the 85-per-dollar mark.
Significant outflows toward the end of October, attributed to the US elections and a strengthening dollar, added to market pressure. Another dealer noted that the RBI actively intervened at all levels to manage the volatility.
In the current financial year, the RBI has been a net seller of dollars in April, June, August, and October.
By October 2024, the RBI’s net outstanding forward sales increased to $49.18 billion, up from $14.58 billion in September.
During FY23, the RBI net bought $41.27 billion, highlighting a significant shift in its dollar trade strategy this year.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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