RBI bought USD 7.78 billion in spot forex market in March

The Reserve Bank of India was a net buyer of dollars worth USD 7.78 billion in the spot forex market in March.
As per the data of Monthly Bulletin for May 2014, the central bank purchased USD 8.75 billion in March while it sold USD 970 million during the month.
However, in February, RBI had sold a net USD 530 million in the spot forex market.
For the entire 2013-14, there were net buys of USD 8.99 billion, showed the data.
RBI sells and purchases dollar in the market to check currency volatility.
In the forward dollar market, the outstanding net forward sales at the end of March by the RBI stood at USD 31.03 billion, versus USD 31.32 billion in the previous month.

The rupee today closed flat at 60.05 per USD, after having surged to almost a 10-month high level of 59.51 per US dollar earlier in the day.