RBI net purchaser of dollar in April; buys $566 millionn

The central bank purchased $1.751 billion of dollars in April

The Reserve Bank continued to remain net buyer of the US currency in April after it bought $566 million from the spot market.

This was second consecutive month in the current fiscal when RBI net bought dollars from the spot market.

The central bank purchased $1.751 billion of dollars in the reporting month, while sold $1.185 billion in the spot market.

In March, RBI had net purchased $3.538 billion from the spot market.

RBI's intervention in forex market is to contain excessive volatility in the domestic currency.

In April 2016, RBI was a net buyer ($1.339 billion) of dollar after it purchased $2.639 billion and sold $1.30 billion in the spot market.

 

In the entire fiscal 2016-17, RBI net purchased $12.351 billion of the US currency. It had bought $71.764 billion from the spot market and sold $59.413 billion in the previous fiscal. In the financial year 2016, RBI was net purchaser of $10.209 billion.

In the forward dollar market, the outstanding net purchase at the end of April was $13.553 billion, RBI data showed.

Net forward purchase at March-end was $10.835 billion.