RBI likely to adopt hands-off approach in foreign exchange market

The RBI continued to be a net buyer of $36.6 billion in this fiscal year - between April and January. In 2020-21, it purchased $68 billion on a net basis.

After selling dollars for the past few months, the Reserve Bank of India (RBI) may take a hands-off approach before its annual account closing by not trying to prop up the rupee as geopolitical tensions show signs of stabilising with global crude oil prices easing from its $140 peak.
 

The central bank was a net buyer of dollars between April and September, and then turned a net seller in the following months, the data released by the RBI showed.
 

The RBI continued to be a net buyer of $36.6 billion in this fiscal year — between April and January. In