Mumbai: The Reserve Bank of India (RBI) sold a total of $7.7 billion (₹64,000 crore) in August to contain the sharp depreciation of the Indian rupee, which has been under intense pressure following the U.S. decision to impose heavy tariffs on Indian imports.
According to the RBI’s latest monthly bulletin, the central bank intervened aggressively in the foreign exchange market to prevent further weakening of the rupee, which had hit a record low of ₹88.89 per U.S. dollar on September 23.
The data shows that the RBI did not purchase any dollars during August but sold a significant amount — over three times what it sold in July, when it had offloaded $2.54 billion in the spot market.
The rupee’s slide past the 88-mark marked one of its worst performances among Asian currencies, with a cumulative 4.61% decline so far this year. September proved to be the worst-performing month for the currency amid sustained foreign capital outflows and a strong U.S. dollar.
However, there has been a slight recovery in October. As of this Monday and Tuesday, the rupee strengthened to ₹87.9620, gaining around 0.39% this month. Despite this uptick, the rupee remains 4.61% weaker compared to the same period last year.
Economists note that the RBI’s active market intervention — through dollar sales — reflects its commitment to curbing excessive volatility and maintaining investor confidence, even as global financial conditions remain tight.
