Archive · 11 Aug 2025
India's Central Bank Sells Dollars to Bolster Rupee
India's central bank is selling U.S. dollars to help keep the value of India's money (the rupee) from getting too low.
They've sold at least $5 billion this month.
The rupee has been falling because the US increased taxes on some Indian products.
A weaker rupee can cause problems for the economy, such as inflation.
The central bank has been stepping in to buy rupees to stabilize the currency.
India's central bank sold at least $5 billion to support the rupee.
The rupee weakened toward a record low this month.
The drop follows increased tariffs by the US on Indian goods.
The RBI intervened in both onshore and offshore currency markets.
The rupee has depreciated over 2% this year, with half the drop in the last two weeks.
- Who
- India’s central bank
- What
- The Reserve Bank of India sold US dollars to boost the rupee.
- When
- This month
- Where
- Onshore and offshore currency markets
- Why
- To prop up the rupee as it weakened toward a record low.
- Amount Sold
- At least $5 billion
- Reason for Weakness
- Increased US tariffs on Indian goods
- Rupee Depreciation YTD
- Over 2%
- RBI Governor
- Sanjay Malhotra
Sources
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