1 week ago
RBI Net Buys $561 Million in June, Rupee Appreciates
The Reserve Bank of India manages some of the country’s foreign money.
In June, it bought slightly more dollars than it sold.
This was the first time it had made a net purchase since February.
The rupee became 0.36 per cent stronger against the dollar.
The RBI had previously been selling dollars during a period of market intervention linked to the West Asia crisis.
The RBI and the government announced steps to encourage overseas investors to put money into India.
These steps included making more long-term government bonds available to foreign investors.
The government also planned tax exemptions for some foreign investors from April 1, 2026.
The RBI’s forward-market dollar short position also became smaller by the end of June.
The Reserve Bank of India net bought $561 million in June, its first net purchase since February.
The RBI bought $30.89 billion and sold $30.33 billion during June.
The rupee appreciated 0.36 per cent against the dollar during the month.
The RBI and government introduced measures to attract foreign capital, including expanding access to long-term government securities.
The RBI’s net short dollar forward position declined to $103.33 billion at the end of June from $106.67 billion in May.
- Who
- The Reserve Bank of India and the Indian government.
- What
- The RBI made a net dollar purchase of $561 million in June while measures were introduced to attract foreign capital.
- Where
- India’s foreign-exchange and government-securities markets.
- When
- June; the tax exemption for certain foreign portfolio investors takes effect April 1, 2026. The reported gold holdings were measured for the week ended July 31.
- Why
- The measures were aimed at attracting foreign capital and making Indian government bonds more appealing to overseas investors.
Key facts
- RBI net purchase
- $561 million in June
- Previous month
- The RBI recorded a $6.10 billion net sale in May
- June trading
- The RBI bought $30.89 billion and sold $30.33 billion
- Rupee performance
- The rupee appreciated 0.36 per cent against the dollar in June
- Forward position
- The net short dollar position fell to $103.33 billion at the end of June
- Gold holdings
- The RBI held 880.52 metric tonnes of gold as of the week ended July 31
- Rupee REER
- The real effective exchange rate rose to 91.75 in July from 91.26 in June
Sources
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