The Reserve Bank of India (RBI) net sold $8.944 billion in the spot foreign exchange market in April, marking the second consecutive month of selling amid sustained pressure on the Indian rupee. This was disclosed in the RBI's monthly bulletin released on June 22, 2026.
Details of the Transaction
According to the data, the RBI's net forward dollar position (including both purchases and sales) stood at $8.944 billion in April. In March, the central bank had net sold $6.543 billion. The selling spree indicates the RBI's intervention to curb volatility in the rupee, which has been under pressure due to global factors such as rising US interest rates and geopolitical tensions.
Impact on Rupee and Reserves
The rupee depreciated by about 0.8% against the US dollar in April, closing at 83.50 per dollar. The RBI's forex reserves stood at $598.3 billion as of April 28, down from $606.2 billion at the end of March. The central bank uses its reserves to manage exchange rate volatility, but persistent selling can deplete reserves.
Market Reaction and Outlook
Analysts expect the RBI to continue its intervention strategy as long as the rupee remains under pressure. "The RBI's actions are aimed at preventing sharp depreciation, which could fuel imported inflation," said Anjali Verma, an economist at a Mumbai-based brokerage. The central bank's forward book also showed a net outstanding position of $8.1 billion, indicating future commitments.
