India cenbank sold net $3.86 billion in spot forex market in August – bulletin By Reuters

© Reuters. FILE PHOTO: A Reserve Financial institution of India (RBI) emblem is seen inside its headquarters in Mumbai, India, April 6, 2023. REUTERS/Francis Mascarenhas/File Picture

MUMBAI (Reuters) – The Reserve Financial institution of India (RBI) bought a internet $3.86 billion within the spot overseas alternate market in August, in keeping with information launched on Thursday as a part of the central financial institution’s month-to-month bulletin.    The RBI mentioned it bought $500 million and bought $4.36 billion throughout the interval. In July, the central financial institution had purchased a internet of $3.47 billion within the spot market.    The Indian rupee depreciated by 0.6% towards the greenback in August. The unit traded in a spread of 82.25 to 83.16.

The RBI’s internet excellent ahead buy stood at $10.07 billion as of end-August, in contrast with a internet buy of $19.47 billion on the finish of the earlier month, the information confirmed.

The central financial institution intervenes within the spot and forwards market to curb alternate fee volatility.

The RBI has been intervening within the spot and forwards market over the previous couple of weeks to stop the rupee from weakening previous its lifetime low of 83.29 towards the greenback, merchants mentioned.

The forex was at 83.2450 to the greenback on Thursday.