RBI sells net $10.02 billion in Dec to curb rupee volatility

THE Reserve Bank of India (RBI) sold a net $10.02 billion in the foreign exchange market in December to contain volatility in the rupee, according to data released in the central bank’s monthly bulletin on Friday.

- PUSHPITA DEY @NewDethi

As per the bulletin, the RBI purchased $18.33 billion and sold $28.35 billion during the month. The net sale was over 3% higher than in November, when the RBI had sold a net $9.7 billion in the market. The rupee fell to a then record low of 91.0750 on December 16, pressured by concerns over a trade stalemate with the US and persistent foreign portfolio outflows. “Rupee depreciated against the US dollar in January in the wake of foreign portfolio outflows and uncertainty surrounding the India-US trade deal. In February, with net foreign portfolio flows turning positive, the INR recovered from its