 "RBI's net dollar purchases rise in July")
With capital flows rising, the Reserve Bank of India (RBI) bought $9.3 billion in July, in contrast to the vulnerable climate in July 2013, when it pumped in $6 billion to arrest a sharp slide in the rupee.
On a net basis, RBI bought $5.4 billion compared with $587 million in June. In July 2013, RBI on a net basis had sold dollars worth $5.9 billion.
The intention has been to absorb the capital flows to build reserves. RBI’s forex reserves rose to $318.6 billion on August 29, from a 39-month low on September 6 last year at $274 billion, On Wednesday, the rupee again breached the 61-mark during intra-day trade. It touched 61.04, the weakest level since August 14. The rupee ended at 60.96 a dollar versus Tuesday's close of 60.61. The depreciation was due to concern that improving US economic data would encourage their central bank to increase interest rates sooner.
RBI's net forward purchases rose in July to $5.3 bn, from a net forward sale of $154 mn in June.
On a net basis, RBI bought $5.4 billion compared with $587 million in June. In July 2013, RBI on a net basis had sold dollars worth $5.9 billion.
The intention has been to absorb the capital flows to build reserves. RBI’s forex reserves rose to $318.6 billion on August 29, from a 39-month low on September 6 last year at $274 billion, On Wednesday, the rupee again breached the 61-mark during intra-day trade. It touched 61.04, the weakest level since August 14. The rupee ended at 60.96 a dollar versus Tuesday's close of 60.61. The depreciation was due to concern that improving US economic data would encourage their central bank to increase interest rates sooner.
RBI's net forward purchases rose in July to $5.3 bn, from a net forward sale of $154 mn in June.