MUMBAI (Reuters) – The Reserve Bank of India (RBI) bought a net of $4.36 billion in the spot foreign exchange market in November, data released on Thursday as part of the central bank’s monthly bulletin showed.
The RBI said it purchased $22.28 billion and sold $17.92 billion in the spot market.
The Indian rupee strengthened 1.6% against the dollar in November, logging its biggest monthly rise since August 2021.
The central bank has been intervening in the spot and forwards market to curb exchange rate volatility, according to forex market participants. Despite the RBI’s regular interventions, the rupee dropped more than 11% against the dollar in 2022.
Apart from the net purchase in the spot market, the central bank’s forward dollar holdings jumped, according to the bulletin on Thursday. The RBI’s net forward dollar holdings stood at $8.49 billion as of end-November, compared with $241 million as of end-October.
(Reporting by Siddhi Nayak; Editing by Shounak Dasgupta)
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