RBI snaps 2 months of dollar buys, net-sells $384 mn in market in Jan

Forward book surges $10.76 bn as central bank picks up dollars

The Reserve Bank of India (RBI) net sold $384 million in the domestic foreign exchange market in January, snapping two months of dollar purchases by the central bank.

In January, the RBI bought $12.9 billion and sold $13.29 billion in the currency market, the central bank’s latest Bulletin showed.

The RBI’s outstanding forward book, however, recorded a spike in January, rising to $21.73 billion from $10.97 billion a month ago. An increase in the outstanding forwards book implies dollar purchases in the forwards segment by the RBI.

In January, the rupee appreciated sharply versus the dollar, gaining 0.9 per cent.